JG Worldwide Files Suit Against Virtuoso for Allegedly Damaging Reputation

JG Worldwide – already under fire in the travel world after the agency closed its business in July, leaving travelers stranded and millions of dollars in unpaid bills – has filed a lawsuit against fellow agency Virtuoso alleging a damaged reputation, according to Travel Weekly.

The claim was filed in New York State Supreme Court and seeks minimum damages of $64.9 million.

In the suit, JG Worldwide claims the damage was twofold. One was Virtuoso’s decision to suspend JG subsidiaries Heritage Tours and Revealed America from the Virtuoso network last February. The other was alleged public statements by Virtuoso accusing Heritage Tours and Revealed America of “late commission payments, service issues and non-responsiveness” that negatively impacted JG Worldwide’s business, causing “an immediate and widespread decrease in call volume,” cancellations and financial losses.

“In an abrupt, knee-jerk, unjustified, unlawful, intentional, malicious and despicable move, Virtuoso literally destroyed [JG Worldwide] overnight,” wrote lawyer James J. DeChristofaro in the claim, while adding that Virtuoso’s actions were also “a death knell” for JG owners Jena Gardner and James Saleh.

Gardner and Saleh filed for Chapter 7 bankruptcy on July 24, claiming up to $10 million in debts and no assets. But when Saleh refused to participate in the bankruptcy proceedings, a court-appointed trustee filed a motion to have the case dismissed.

According to JG Worldwide, the vast majority of its business and revenues came from Heritage Tours and Revealed America’s association with Virtuoso.

In a statement, Virtuoso said “Virtuoso has not reviewed any court filing by JG and cannot comment on pending litigation. Virtuoso has and will continue to act in the best interest of its membership.”