FDD Items 3 & 4 · 2025 filing

AC Hotels by Marriott litigation history

What AC Hotels by Marriott disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 21; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2025; Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

Item 3 discloses data security incident litigation (In re Marriott International Customer Data Security Breach Litigation MDL No. 19-md-2879; City of Chicago v. Marriott; consolidated Canadian class actions; numerous administrative investigations resolved including $52M AG settlement and ICO ~$23.8M penalty), resort/destination fee litigation (District of Columbia v. Marriott; Pennsylvania $225,000 resolution), franchisor-initiated arbitrations/suits (Arkansas Knoxville Hotel; Lucky Cleveland Holdings $1.95M award; Pride Hotel), other pending actions (Portillo v. CoStar; Segal v. Amadeus antitrust; Hall v. Marriott $16M jury verdict on agency theory, under appeal), and concluded actions.

Item 3 (litigation) · 21 matters disclosed · 8 pending listed

Litigation cases

Parent, affiliates, master franchisor and subfranchisor

Pending (8)

Portillo v. CoSTAR Group, Inc.
pending
Brought by a third party · Marriott International, Inc. (MII, our parent) · filed 2024-02-20 · U.S. District Court, Western District of Washington · 2:24-cv-00229
“… Case No. 2:24-cv-00229, United States District Court for the Western District of Washington.”Page 28 of the 2025 FDD, Item 3
Segal v. Amadeus IT Group, S.A.
pending
Brought by a third party · Marriott International, Inc. (MII, our parent) · filed 2024-03-01 · U.S. District Court, Northern District of Illinois · 1:24-cv-01783
“… Case No. 1:24-cv-01783 (United States District Court for the Northern District of Illinois).”Page 28 of the 2025 FDD, Item 3
Hall v. Marriott
pending
Brought by the franchisor · Marriott International, Inc. (MII, our parent) · filed 2022-01-20 · Superior Court of Forsyth County, North Carolina · 22-CVS-00374
“3. Hall v. Marriott Case No. 22-CVS-00374, Superior Court of Forsyth County, North Carolina. On January 20, 2022, plaintiff Juateria Hall filed a civil suit against BPR Winston Salem LLC, the franchisee of a Residence Inn hotel in Winston Salem, North”Page 29 of the 2025 FDD, Item 3
City of Chicago v. Marriott International, Inc., et al.
pending
Government or regulatory action · Marriott International, Inc. (MII, our parent) · filed 2019-02-14 · U.S. District Court, District of Maryland · 8:19-cv-00654
“2. City of Chicago v. Marriott International, Inc., et al., Case No. 8:19-cv-00654 (D.”Page 25 of the 2025 FDD, Item 3
District of Columbia v. Marriott International, Inc.
pending
Government or regulatory action · Marriott International, Inc. (MII, our parent) · filed 2019-07-09 · D.C. Superior Court · 2019 CA 004497 B
“… Case No. 2019 CA 004497 B (D.C. Super. Ct.). On July 9, 2019, the District of Columbia filed a lawsuit against MII in the Superior Court of the District of Columbia alleging violations of the District of Columbia’s Consumer Protection Procedures Act (“CPPA”), D.C.”Page 27 of the 2025 FDD, Item 3
In re Marriott International Customer Data Security Breach Litigation
pending
Brought by a third party · Marriott International, Inc. (MII, our parent) and Starwood · filed 2019-02-06 · U.S. District Court, District of Maryland (MDL) · MDL No. 19-md-2879
“… (MDL No. 19-md-2879). Numerous putative class actions and some individual actions have been filed against Starwood and MII in U.S. federal and state courts alleging, among other claims,”Page 25 of the 2025 FDD, Item 3
Turkish Personal Data Protection Authority (“KVKK”) Action
pending
Government or regulatory action · Marriott International, Inc. (MII, our parent) · filed 2019-05-16 · Turkish Personal Data Protection Authority (KVKK) · Decision No. 2019/143
“… Following an investigation into the Data Security Incident, the KVKK issued Decision No. 2019/143 on May 16, 2019.”Page 26 of the 2025 FDD, Item 3
Canadian Actions
pending
Brought by a third party · Marriott International, Inc. (MII, our parent), Starwood and Canadian affiliates · Courts of British Columbia, Alberta, Ontario, Quebec and Nova Scotia (consolidated in Ontario)
“4. Canadian Actions. Following the disclosure of the Data Security Incident, 16 putative class action lawsuits were commenced in British Columbia, Alberta, Ontario, Quebec, and Nova Scotia.”Page 27 of the 2025 FDD, Item 3

Concluded (12)

Marriott International, Inc. v. Lucky Cleveland Holdings LLC
judgment
Brought by the franchisor · Marriott International, Inc. (MII, our parent) · filed 2024-09-18 · American Arbitration Association · 01-24-0007-8067
“… Case No. 01-24- 0007-8067, American Arbitration Assoc. On September 18, 2024, MII filed an arbitration demand against a former franchisee, Lucky Cleveland Holdings, LLC, and its principals relating to the franchisee’s failure to pay fees following termination of the franchise agreement.”Page 28 of the 2025 FDD, Item 3
Marriott International, Inc. v. Pride Hotel, LLC
settled
Brought by the franchisor · Marriott International, Inc. (MII, our parent) · filed 2024-08-02 · U.S. District Court, Eastern District of New York · 1:24-cv-05752
“… Case No. 1:24-cv-05752 (U.S. EDNY). On August 2, 2024, MII filed a breach of contract claim before the U.S. District Court for the Eastern District of New York against Pride Hotel, LLC, a franchisee who signed franchise agreements to open an Aloft Hotel and an Element Hotel.”Page 28 of the 2025 FDD, Item 3
Marriott International, Inc., et al. v. Arkansas Knoxville Hotel, LP, et al.
settled
Brought by the franchisor · Marriott International, Inc. (MII, our parent) · filed 2023-08-31 · American Arbitration Association · 01-23-0003-8672
“… Case No. 01-23-0003-8672, American Arbitration Assoc.”Page 28 of the 2025 FDD, Item 3
Rahman et al. v. Marriott International, Inc.
settled
Brought by a third party · Marriott International, Inc. (MII, our parent) · filed 2020-04-03 · U.S. District Court (C.D. Cal.) · SA CV 20-00654-DOC-KES
“… No. SA CV 20-00654-DOC-KES. On March 31, 2020, MII notified guests of a property system incident involving guest information that may have been improperly accessed through the use of login credentials of two franchise employees at a franchise property (“Property System Incident”).”Page 29 of the 2025 FDD, Item 3
Information Commissioner’s Office in the United Kingdom (the “ICO”) Action
concluded
Government or regulatory action · Marriott International, Inc. (MII, our parent) · filed 2019 · U.K. Information Commissioner's Office
“… In July 2019, the ICO issued a formal notice of intent under the U.K.”Page 26 of the 2025 FDD, Item 3
Jamil Rivera v. Marriott International, Inc. and International Hospitality Enterprises, Inc.
settled
Brought by a third party · Marriott International, Inc. (MII, our parent) · filed 2019-09-18 · U.S. District Court, District of Puerto Rico · 19-cv-01894-GAG
“… 19-cv-01894-GAG (D.P.R.). On September 18, 2019, a putative class action was filed against MII and International Hospitality Enterprises, Inc. in the United States”Page 30 of the 2025 FDD, Item 3
Robert Puleo v. Marriott International, Inc., International Hospitality Enterprises, Inc., and Condado Duo, La Concha, SPV, LLC
settled
Brought by a third party · Marriott International, Inc. (MII, our parent) · filed 2019-09-20 · U.S. District Court, District of Puerto Rico · 19-cv-01893-WGY
“… 19-cv-01893-WGY (D.P.R.).”Page 30 of the 2025 FDD, Item 3
Todd Hall v. Marriott, International, Inc.
settled
Brought by a third party · Marriott International, Inc. (MII, our parent) · filed 2019-09-09 · U.S. District Court, Southern District of California · 19-cv-1715-JLS-AHG
“… Case No. 19-cv-1715-JLS-AHG (S.D. Cal.). On September 9, 2019, a putative class action was filed against MII in the United States District Court for the Southern District of California alleging violations of the Consumers Legal Remedies Act, Cal. Civ.”Page 30 of the 2025 FDD, Item 3
Cityfront Hotel Associates Limited Partnership, et al. v. Starwood Hotels & Resorts Worldwide, Inc., et al.
settled
Starwood Hotels & Resorts Worldwide, Inc. and Marriott International, Inc. (MII, our parent) · filed 2016-05-10 · Supreme Court of the State of New York, County of New York · 652521/2016
“… (Supreme Court of the State of New York, County of New York, Case No. 652521/2016).”Page 30 of the 2025 FDD, Item 3
Canadian Office of the Privacy Commissioner (“OPC”) Investigation
concluded
Government or regulatory action · Marriott International, Inc. (MII, our parent) · Office of the Privacy Commissioner of Canada
“Canadian Office of the Privacy Commissioner (“OPC”) Investigation. Following”Page 26 of the 2025 FDD, Item 3
HPT CY TRS, Inc. and HPT TRS MRP, Inc., v. Marriott International, et al.
judgment
Marriott International, Inc. (MII, our parent) and affiliated Managers · Arbitration · 01-20-0009-9886
“… (Arbitration No. 01-20-0009-9886). Our affiliates Residence Inn by Marriott, LLC, TownePlace Management, LLC, Courtyard Management Corporation, Marriott Hotel Services, Inc., Essex”Page 29 of the 2025 FDD, Item 3
U.S. Investigations
concluded
Government or regulatory action · Marriott International, Inc. (MII, our parent) · Attorneys General of 50 states and D.C.; Federal Trade Commission
“… Attorneys General from all 50 U.S. states and the District of Columbia (the “AGs”), the Federal Trade Commission, and certain committees of the U.S. Senate and House of Representatives have made inquiries, opened investigations, or requested information and/or documents relating to the Data Security Incident and associated matters.”Page 26 of the 2025 FDD, Item 3

Status not stated in the filing (1)

Office of the Australian Information Commissioner (the “OAIC”) Investigation
Government or regulatory action · Marriott International, Inc. (MII, our parent) · filed 2022-12-19 · Office of the Australian Information Commissioner
“… Following an investigation into the Data Security Incident, the OAIC issued an Enforceable Undertaking on December 19, 2022.”Page 27 of the 2025 FDD, Item 3

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

Significant litigation portfolio including 2018 data breach class actions, regulatory investigations, and ongoing fee disputes affecting brand reputation

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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