Guests take on Las Vegas hotel in legal battle over unfair prices

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A group of consumers who have accused multiple Las Vegas casino-resorts of engaging in a hotel room price-fixing scheme are fighting to have their lawsuit reinstated. They argue that this case is significant in the realm of antitrust claims, particularly in instances where companies are using new technology to pass inflated costs on to the public.

In a recent filing with the 9th U.S. Circuit Court of Appeals, the hotel customers requested that their class-action lawsuit against five Las Vegas casino operators and a software company be allowed to proceed. Despite having been dismissed by a Nevada district court judge earlier in the year, the plaintiffs believe they have presented enough evidence to establish a coordinated effort among Wynn Resorts, Caesars Entertainment, Treasure Island, Blackstone (former operator of The Cosmopolitan), JC Hospitality (operator of the Virgin casino-hotel), Cendyn Group, and its subsidiary Rainmaker Group Unlimited.

The lawsuit alleges that the casino-hotel operators conspired to overcharge guests by inputting artificially inflated prices into the software program used to determine room rates. The plaintiffs argue that advancements in technology have made it easier for competitors to collude through algorithms, thus necessitating a closer look at potential antitrust violations.

When contacted for comment, the casino-hotel operators did not respond immediately. However, they have previously denied the allegations brought against them.

A similar case in Atlantic City involving Caesars Entertainment, MGM Resorts International, and Hard Rock International is still pending. U.S. District Chief Judge Miranda Du dismissed the Nevada case in May, stating that the customers had failed to provide sufficient evidence of collusion between the hotel operators and the software developer.

The recent filing contends that the Nevada District Court made errors in dismissing the claims, arguing that the court’s decision effectively shields algorithmic price fixing from liability. The plaintiffs are pushing to have the lawsuit reinstated in order to bring attention to the alleged antitrust violations.

For further inquiries, David Danzis can be reached at ddanzis@reviewjournal.com or (702) 383-0378. Follow @AC2Vegas_Danzis on X for more updates.

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