@Jay Hinrichs did you see the lawsuits already started? 

Lawsuits run a year and a half or so.

But also lawsuits up the ying-yang that appears to keep loosing.

And for sure when your  an LP and your GP goes belly up not much you can do although I am sure lawsuits will be flying from other investors towards the GPs thats a given.

I also look for lawsuits and see what happened in them.

Class action lawsuits might still be a practical solution to the problem, but, if the statute of limitations is not waived, there is no chance of combining the original cases as their time to file has run out.

Your seller can complain years down the road that he was "tricked" and you will be thrown into a lawsuit and investigation. 

Every one of the owners he is under contract with will tell you to run from this builder (law suits in the works).  

If they have no assets or if you don't have verifiable proof a lawsuit is worthless.

Quote from @Jonathan Kurtz: It's not likely that with the number of lawsuits already out against Blacktip, there is going to be anything worth fighting for.