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Horological Meandering

Fully understandable, and you should not be stuck with it...

 

... since you can prove the previous owners knew about it you can claim your money back yourself. The omission of not being open about the history of the watch can be defined as so serious that the contract becomes invalid and reimbursement can be claimed.
All in all a very unpleasant situation, you certainly have my full sympathy and I seriously hope you get it resolved positively. It's also a good reminder to all of us here that things can go wrong and we need to be aware of potential flaws, not only on watches without papers since false documentation is quite common these days, unfortunately.

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