The $3.9 billion development consists of two hotel-condominium towers perched atop a multilevel retail, casino and entertainment podium.

Deutsche Bank bought the 3,000-unit development complex, on 8.5 acres, during a foreclosure sale last summer. It's tentatively expected to finish construction next year.

The court settlement will return 74.4 percent of homebuyer deposits, which average about $140,000 a piece.

Deutsche Bank spokesman John Gallagher declined to comment on the case.

Homebuyers have until Dec. 4 to opt out of the settlement. Checks could be mailed out in time for Christmas.

"We are pleased with the decision and feel that it represents a fair settlement, which makes economic sense for everyone," Marquis & Aurbach managing principal Terry Coffing said. "We believe the checks will be distributed by the end of December."

Las Vegas-based law firm Marquis & Aurbach represents owners of 430 units inside Cosmopolitan's West Tower, or 32.5 percent of the total building. Homebuyers had claimed numerous breaches of contract, including late completion of the resort.

But not everyone is happy with the deal.

"The offer by Deutsche Bank is insulting," said Daniel Park, a partner with Los Angeles-based Lurie & Park, which represents more than 20 homebuyers inside the West Tower. "This would be a windfall profit for Cosmopolitan, resulting from their failure to honor the promises made to buyers."

Lurie & Park intends to represent homebuyers unwilling to settle for partial payment.

"Buyers of units are being told that they must agree, or opt out of the settlement by early December," added Lurie & Park associate attorney Sonia Taylor. "This is a pressure tactic that is unseemly."

Cosmopolitan's East Tower, meanwhile, remains mired in litigation. Purchase pacts for the 800-unit high-rise are structured differently, which makes a settlement agreement unlikely, say legal experts. The fight for return deposits is expected to head to court. A sold-out East Tower represents around $112 million in deposits.

A worsening economic outlook has many Cosmopolitan homebuyers scrambling to get out from underneath their purchases, as many face challenges finding funds and securing mortgages amid a frozen credit market. Luxury condominiums are being valued differently today than a few years ago during the real estate boom.

Contact reporter Tony Illia at tonyillia@aol.com or 702-303-5699.