SACRAMENTO – California Attorney General Xavier Becerra today announced a lawsuit against Texas-based ClubCorp Inc., owner-operator of more than 200 private golf and country clubs nationwide, for failing to repay more than $10 million owed to its more than 9,000 California members. Under the contract entered into by club members, the money, paid as deposits by members, had to be returned after 30 years. Instead, ClubCorp only returned the money if asked and otherwise continued using the money for its own purposes. Given that the club targeted members in mid-life, many of the members to whom the club owed dues are senior citizens.
“We are taking action against ClubCorp on behalf of thousands of Californians,” said Attorney General Becerra. “Instead of repaying money owed to its members, ClubCorp allegedly pocketed its members’ money unless reminded of its obligation. Through this lawsuit, we are reminding ClubCorp that it’s time for the company to return the millions it owes to Californians.”
The complaint further alleges ClubCorp violated the California False Claims Act by filing reports with the State Controller’s Office that falsely omitted the amounts it owed to its members. If ClubCorp could not return that money to its members, it was required to provide it to the Controller to be held for the rightful owner. ClubCorp is not allowed to simply keep the money, and in doing so is alleged to have violated the law.
A copy of the complaint can be found here.