Price-fixing lawsuit called for dismissal by MGM, Caesars, Wynn and more

April 5, 2023
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The lawsuit accuses several hotels of fixing their room prices through revenue management platform, Rainmaker.

Las Vegas strip hotel operators MGM Resorts International, Caesars Entertainment, Wynn Resorts Holdings and Treasure Island have been implicated in a price-fixing lawsuit, as reported by the Las Vegas Review-Journal. Lawyers representing the hotels, as well as the Cendyn Group’s revenue management platform, Rainmaker, have said the plaintiff has no direct evidence of price-fixing.

The plaintiffs, two tourists, accused the hotels of violating the Sherman Antitrust Act in January, and stated that Rainmaker illegally maximizes hotel profits by using competitor information to change pricing in real-time. They are represented by Hagens Berman of Seattle.

The hotels cite a lack of evidence in their dismissal of the allegations. The initial complaint relied on a confidential witness who said the products are used by 90% of Vegas Strip Hotels. It did not say who entered the collusion, or where it began.

The motion states that the complaint speaks of the general nature of algorithmic pricing, while the lawsuit seeks to hold defendant hotels liable for repayment for guests who allegedly overpaid.

The defendants’ joint motion to dismiss the US District Court of Nevada case said, “The complaint fails at the outset because it is missing every essential ingredient necessary to plead an antitrust conspiracy.

“The complaint fails to identify a single communication between Hotel Defendants, much less one that suggests a conspiracy was afoot.”

A statement by Steve Berman, Managing Partner of Hagens Berman, said he expected the defendants’ motion to dismiss.

Berman, not devoid of puns, quipped... “The defendants in this case will attempt every trick in the book to hedge their bets, but we believe the cards are stacked against them. We look forward to the court’s response and to continuing this case on behalf of the sizable class of those harmed by their illegal pricing measures.”

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