Diamond Resorts (DRII) Stock Tanks After Negative NYT Article

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Diamond Resorts (NYSE:DRII) stock is down following a negative report regarding its business practices.

Diamond ResortsThe New York Times wrote a piece that questioned Diamond Resorts operations, claiming its sales practices can be “forceful” and the company could be facing new regulation from the Consumer Financial Protection Bureau.

Diamond Resorts is also facing two lawsuits regarding its business practices. “In my experience, Diamond is much more ambitious, aggressive and downright nasty in their sales presentations compared to Marriott and Westin,” Jeff Weir, a Diamond timeshare owner, told the Times.

“Diamond just has an amazing reputation of being tough on people.” The company said in a letter to investors Monday that is has a “strict set of sales policies and practices aimed at protecting the consumer that are in-line with industry best practices,” Diamond Resorts said in a letter to investors on Monday.

A 2015 survey showed that 88.1% of customers enjoyed their overall experience at Diamond’s resorts, the company said.
“Our company has a zero tolerance policy for any member of the sales team who does not follow protocol,” Diamond Resorts added.

DRII stock is down 17.4% Monday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/01/diamond-resorts-drii-stock-nyt/.

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