US Court rejects antitrust lawsuit against Las Vegas hoteliers

Miranda Du, the chief US district judge in Nevada, has disregarded a proposed lawsuit against the major actors in the Las Vegas hotel industry. Inclusions included MGM Resorts International, Caesars Entertainment, and others. The allegation was that the hotels had increased their accommodation rates in violation of U.S. antitrust law.

Judge Du issued a 13-page order in which numerous factual mistakes were noted with regard to the consumer action against the targeted hotels. Since the defendants in this instance are unwilling to accept any misdemeanor on their part, the judge declined to comment on the antitrust problem.

Added to the names in the lawsuit were Wynn Resorts, as well as Treasure Island and Cendyn, which is a company involved in developing revenue management software targeting the hotel business. The prosecutor, attorney Steve Berman of Hagens Berman Sobol Shapiro, however, divulged their game plan of filing an amended complaint in a month to be able to satisfy the court.  

According to the casino news, the initial lawsuit spoke of a class action position for consumers who had booked into a hotel on the Las Vegas strip. Ever since 2019, it has been the most sought-after entertainment hub in the southern part of Las Vegas. As per the allegations made by the Florida and Washington residents, the hotels utilized data obtained from Cendyn, which is an affiliate of Rainmaker, for misappropriating rates of rooms. 

Accusations have been made that Rainmaker was involved in gathering restricted price-related data from all of the hotels mentioned and suggesting rates via multiple algorithms. In this scenario, Judge Du was of the firm opinion that nowhere is it being proved that the concerned hotels were following the price algorithms or had consented to do so. 

Judge Du further added that the plaintiff’s allegations did not match up with the fact that it was necessary for the hotels to adopt the rates suggested by the Rainmaker software or that they were compelled in any way.