FDD Items 3 & 4 · 2026 filing

La Quinta by Wyndham litigation history

What La Quinta by Wyndham disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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: 15; 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: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Multiple pending cases: (1) 2 suits against LQF for breach of contract/counterclaims by former franchisees; (2) 3 suits by LQF against terminated franchisees for unpaid fees; (3) 8 suits involving WHR/parent affiliates for price-fixing (hotel revenue management software antitrust class actions), resort/destination marketing fee claims, and cybersecurity/consumer fraud. Several resolved cases disclosed including FTC settlement (2015), class action resort fee settlement (2020).

Item 3 (litigation) · 15 matters disclosed · 11 pending listed

Litigation cases

The franchisor

Pending (2)

La Quinta Franchising LLC v. Alsbury Hospitality, Inc., Percy Pooniwala, and Dinaz Surtee
pending
Brought against a franchisee · filed 2022-08-23 · U.S. District Court for the District of New Jersey · 2:22-cv-05184-CCC-MAH
“La Quinta Franchising LLC. v. Alsbury Hospitality, Inc., Percy Pooniwala, and Dinaz Surtee (United States District Court for the District of New Jersey, Case No 2:22-cv-05184-CCC-MAH).”Page 20 of the 2026 FDD, Item 3
La Quinta Franchising LLC v. Shin Hospitality, Inc., Percy Pooniwala, and Dinaz Surtee
pending
Brought against a franchisee · filed 2022-08-23 · U.S. District Court for the District of New Jersey · 2:22-cv-05183-CCC-MAH
“La Quinta Franchising LLC. v. Shin Hospitality, Inc., Percy Pooniwala, and Dinaz Surtee (United States District Court for the District of New Jersey, Case No 2:22-cv-05183-CCC-MAH).”Page 20 of the 2026 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (9)

Benoit v. Integrated Decision and Systems Inc. et al.
pending
Brought by a third party · Wyndham Hotels & Resorts, Inc. (ultimate parent); Wyndham Hotels & Resorts Canada, Inc. · filed 2026 · Cour Supérieure du Québec · 200-06-000274-251
“… (Cour Supérieure du Québec, Case No. 200-06-000274-251). In January 2026, Patrick Benoit filed a proposed class action against SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and”Page 21 of the 2026 FDD, Item 3
Beard Real Estate Holding Two, LLC v. Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc.
pending
Brought by a franchisee · Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. (the Wyndham Entities) · filed 2025-08-04 · Circuit Court of Chicot County, Arkansas · 09-cv-25-119
“… (Circuit Court of Chicot County, Arkansas, Civil Division;”Page 22 of the 2026 FDD, Item 3
Jantunen v. SAS Institute (Canada) Inc., et al.
pending
Brought by a third party · Wyndham Hotels & Resorts, Inc. (ultimate parent); Wyndham Hotels & Resorts Canada, Inc. · filed 2025-12-05 · Supreme Court of British Columbia · VLC-S-S-259245
“… (Supreme Court of British Columbia, Case No. VLC-S-S-259245). On December 5, 2025, Evelyn Jantunen and John Jantunen sued SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and Systems, Inc”Page 21 of the 2026 FDD, Item 3
Proulx et al. v. Orsini Bros. Inns Inc. et al.
pending
Brought by a third party · Wyndham Hotels & Resorts, Inc. and Wyndham Hotels & Resorts Canada, Inc. (Wyndham Group) · filed 2025-07-08 · Ontario Superior Court of Justice · CV-25-00000000-00CP
“… (Ontario Superior Court of Justice, CV-25-00000000-00CP). On July 8, 2025, plaintiffs Patrick Proulx, Gordon Vanwestern, Boris Susac, and John Martin filed a proposed class action against Carmelo Niagara Company”Page 21 of the 2026 FDD, Item 3
Tumas Raju Patel and Kalpesh Solanki v. Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc.
pending
Brought by a franchisee · Wyndham Hotels and Resorts, Inc.; Wyndham Hotel Group (our parent); Super 8 Worldwide, Inc. · filed 2025-12-02 · U.S. District Court, Central District of California · CV25-03815
“… (United States District Court, Central District of California;”Page 22 of the 2026 FDD, Item 3
Hanson Dai, et al. v. SAS Institute, Inc., et al.
pending
Brought by a third party · Wyndham Hotels & Resorts, Inc. (ultimate parent) · filed 2024-04-26 · U.S. District Court, Northern District of California · 4:24-cv-02537
“… (United States District Court, Northern District of California, Case No. 4:24-cv-02537).”Page 23 of the 2026 FDD, Item 3
In Re Extended Stay Hotel Antitrust Litigation
pending
Brought by a third party · Wyndham Hotels & Resorts, Inc. (ultimate parent) · filed 2024-07-24 · U.S. District Court, Northern District of California · 4:24-cv-09060-JSW
“… (United States District Court, Northern District of California, Case No. 4:24- cv-09060-JSW).”Page 22 of the 2026 FDD, Item 3
Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc, and Baymont Franchise Systems, Inc. v. LuxUrban Hotels, Inc., LuxUrban RE Holdings LLC, CorpHousing RSL LLC, and Brian Ferdinand
pending
Brought against a franchisee · Wyndham Hotel Group, LLC (our parent) and affiliates · filed 2024-05-16 · Superior Court of New Jersey, Morris County · MRS-L-000977-24
“… (The Superior Court of New Jersey, Morris County, Case No. MRS-L-000977-24).”Page 22 of the 2026 FDD, Item 3
Norma Knuth v. Wyndham Worldwide Corporation, et al.
pending
Brought by a third party · Wyndham Hotel Group, LLC (our parent) and affiliates (the Wyndham Entities) · filed 2014-12-05 · Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina · QBG-2650/2014
“… (Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina, QBG-2650/2014).”Page 23 of the 2026 FDD, Item 3

Concluded (4)

Jay Brodsky v. Hilton Worldwide Inc., et al.
settled
Brought by a third party · 'Wyndham Hotels' · filed 2018-08-20 · U.S. District Court for the District of New Jersey · 2:18-cv-13045-KM-JBC
“… (United States District Court for the District of New Jersey, Case 2:18- cv-13045-KM-JBC).”Page 24 of the 2026 FDD, Item 3
Thomas Luca, Jr. v. Wyndham Worldwide Corporation, et al.
settled
Brought by a third party · Wyndham Hotel Group, LLC (our parent) and Wyndham Hotels and Resorts, LLC · filed 2016-06-06 · U.S. District Court for the Western District of Pennsylvania · 2:16-cv-00746-MRH
“… (United States District Court for the Western District of Pennsylvania, Case 2:16-cv-00746-MRH).”Page 23 of the 2026 FDD, Item 3
FTC v. Wyndham Worldwide Corporation, et al.
dismissed
Government or regulatory action · Wyndham Hotel Group, LLC (our parent) and affiliates (the Wyndham Entities) · filed 2012-06-26 · U.S. District Court for the District of New Jersey · 13-cv-1887 (ES)(JAD)
“… (United States District Court for the District of New Jersey, Case No. 13-cv-1887 (ES)(JAD)).”Page 25 of the 2026 FDD, Item 3
Joyce Roberts v. Wyndham International, Inc., Wyndham Worldwide Operations, Inc., Wyndham Hotels and Resorts, LLC & Does 1-10
settled
Brought by a third party · Wyndham Hotels and Resorts, LLC (footnote 1: the predecessor franchisor to a Lodging Affiliate) · filed 2012-07-17 · Superior Court of California, County of Santa Cruz (removed to the Northern District of California) · RG 12639589
“Joyce Roberts, individually and on behalf of classes of similarly situated individuals v. Wyndham International, Inc., Wyndham Worldwide Operations, Inc., Wyndham Hotels and Resorts, LLC & Does 1-10 (Superior Court of the State of California, County of Santa Cruz (RG 12639589).”Page 24 of the 2026 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

Multiple active litigations including franchisor breach of contract suits against franchisees, antitrust/price-fixing class actions, and consumer protection class actions signal systemic disputes
FTC settlement for cybersecurity failures raises data protection and consumer trust concerns in hospitality sector

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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