A recently filed lawsuit alleges that a revenue management platform used by Las Vegas strip hotels, Rainmaker, used a system to keep rooms priced high so the competition would not undercut pricing. The lawsuit claims Rainmaker’s algorithm allowed the alleged price-fixing to occur at the expense of the consumer. Rainmaker does not use the same algorithms or system as Expedia or TripAdvisor. Those companies display current pricing and rates. Rainmaker does not and recommends future pricing to hotels. According to the lawsuit, hotels then use that information to set their pricing.
Cendyn Group, MGM Resorts International, Caesars Entertainment Inc., Treasure Island LLC, and Wynne Resorts Holdings are all named in the proposed class action.
The lawsuit is Gibson et al. v. MGM Resorts International et al., U.S. District Court for the District of Nevada, Case No. 2:23-cv-00140.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
