A PYMNTS Company

US Judge Dismisses Las Vegas Hotel Price-Fixing Lawsuit

 |  October 25, 2023

A proposed class action lawsuit alleging a conspiracy among major Las Vegas hotel operators to inflate room rates in violation of U.S. antitrust laws has been dismissed by Chief U.S. District Judge Miranda Du in Nevada. The suit targeted prominent hotel companies, including MGM Resorts, Caesars Entertainment, and others, as well as a pricing software platform.

In a 13-page ruling issued on Tuesday, Judge Du cited “ambiguity” and “numerous deficiencies” in the consumer lawsuit, though she did not pass judgment on the antitrust claims at its core. She did, however, allow the plaintiffs to submit an amended lawsuit within a 30-day window. The defendants in the case, which includes Wynn Resorts, Treasure Island, and Cendyn, a revenue management software developer for the hospitality industry, have consistently denied any wrongdoing, per Reuters.

Related: Las Vegas Hotels Face Antitrust Suit Over Price Collusion

Attorney Steve Berman from Hagens Berman Sobol Shapiro, representing the plaintiffs, expressed the intention to file an amended complaint. He stated, “We are confident we can address the court’s concerns.” Representatives for MGM, Wynn, Caesars, Treasure Island, and Cendyn either declined to provide comments or did not respond immediately to requests for comment.

The original lawsuit aimed to secure class action status for consumers who had booked hotel rooms on the iconic Las Vegas Strip since 2019, a popular destination drawing millions of visitors annually. The complaint, brought by residents of Florida and Washington state, alleged that the hotel defendants utilized shared data from Cendyn subsidiary Rainmaker to manipulate hotel prices and circumvent supply and demand dynamics related to available rooms.

Source: Reuters