A collective legal action accusing prominent Las Vegas hotels of engaging in price-fixing schemes has been terminated by a federal judge. Subsequently, Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island achieved a significant triumph in an extensive legal battle that commenced more than a year ago.
Legal Action Claims a Price-Fixing Plot Among Leading Las Vegas Hotel Operators
Initiated in January 2023 by Seattle-based attorneys from Hagens Berman Sobol Shapiro, the lawsuit was lodged on behalf of two visitors seeking reimbursement for purported overcharges. The legal complaint alleged that major Las Vegas hotel chains, including Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island, clandestinely agreed to inflate room costs utilizing data-sharing technology known as Rainmaker.
Reportedly, the hotel chains employed software created by Florida-based Cyndyn Group to exchange confidential pricing data amongst themselves, leading to inflated room tariffs.
The plaintiffs targeted these Las Vegas hospitality giants under the Sherman Antitrust Act, a legal framework designed to curb anti-competitive behaviors detrimental to consumers.
In a recent court session related to this case, US District Chief Judge Miranda Du dismissed the claims, as detailed by The Las Vegas Review-Journal. She indicated that the plaintiffs failed to demonstrate a definitive price-fixing agreement among the involved hotels.
Judge Du’s decision echoed a previous dismissal from October 2023. Even after submitting an amended complaint, the plaintiffs could not substantiate sufficient grounds for a believable price-fixing case.
Suit Asserts Bias in Las Vegas Hotel Pricing Software; Judge’s Verdict Sheds Light on Ambiguities
The suit claimed that the operation of Rainmaker’s software distorted usual market dynamics by generating skewed pricing suggestions that allegedly benefitted the hotel operators, resulting in raised room charges for consumers.
However, Judge Du observed that hotel operators were not mandated to adhere to Rainmaker’s pricing proposals, which undermined the plaintiffs’ contention.
Representatives of the hotel operators praised the ruling, reiterating their commitment to ethical business practices.
Conversely, the plaintiffs’ legal team noted that they are presently evaluating their options, with a potential appeal under consideration.
In April of the preceding year, Las Vegas hotel-casino firms had also pushed for the class-action suit’s dismissal, denying the plaintiff’s conspiracy claims.
At that time, Amanda Belarmino, an assistant professor at the William F. Harrah College of Hospitality at UNLV, criticized the allegations as baseless, attributing the heightened room prices to market dynamics post-lifting of pandemic restrictions.
