Court Upholds Dismissal of Las Vegas Hotel Price-Fixing Lawsuit

On Friday, the 9th U.S. Circuit Court of Appeals in San Francisco upheld a lower court’s ruling that dismissed a proposed consumer class action accusing the resorts of conspiring through shared use of Cendyn, a revenue-management software provider. Plaintiffs had argued that by feeding sensitive internal data into the platform, the hotels coordinated pricing and unfairly inflated room rates, per Reuters.

The three-judge panel found that the consumers failed to demonstrate that the hotels had reached any agreement to follow Cendyn’s pricing recommendations. Instead, the court concluded that independent use of the same technology did not amount to illegal coordination or restrain competition. Circuit Judge Carlos Bea, writing for the panel, noted that adjusting prices to maximize profits reflected standard competition rather than its elimination.

Read more: Gibson Decision Hands Atlantic City Casino-Hotels Dismissal of Price-Fixing Claims

The plaintiffs brought the case after Chief U.S. District Judge Miranda Du dismissed it last May. They argued that even non-binding price suggestions could distort competitive markets. However, the appeals court disagreed, emphasizing that the evidence did not show collusion among the operators.

Cendyn welcomed the court’s decision, while Wynn Resorts declined to comment. Caesars and Treasure Island did not immediately respond to requests for comment, Reuters reported. The companies and Cendyn have consistently denied any wrongdoing.

This case is part of a broader wave of lawsuits targeting hotels and other industries accused of using revenue-optimization platforms to coordinate pricing. Last year, a similar proposed class action against casino-hotel operators in Atlantic City was also dismissed.

The case is Richard Gibson et al v. Cendyn Group et al, 9th U.S. Circuit Court of Appeals, No. 24-3576.

Source: Reuters