On October 20, a California trial court granted summary judgment in favor of defendants in Mach v. Yardi Systems, Inc., rejecting class plaintiffs’ claims that defendants violated California’s antitrust law, the Cartwright Act, through their common use of rental pricing software. The decision, which relied on “critical” evidence produced
Continue Reading California Court Rejects First Algorithmic Price Fixing Case to Reach Summary Judgment
Ninth Circuit Rejects Vegas Hotel Algorithmic Price Fixing Claims
On August 15, the Ninth Circuit Court of Appeals affirmed the dismissal of a class action complaint in Gibson v. Cendyn Group, No. 24-3576, rejecting plaintiffs’ arguments that Las Vegas hotels violated Section 1 of the Sherman Act through their common use of revenue management software. The decision follows
Continue Reading Ninth Circuit Rejects Vegas Hotel Algorithmic Price Fixing ClaimsCalifornia Court Dismisses Hotel Algorithmic Price Fixing Claims
Last month, a California federal court in Dai v. SAS Institute, No. 4:24-cv-02537 (N.D. Cal. 2025), dismissed a proposed antitrust class action complaint against six nationwide hotel operators alleging that the hotels’ common use of revenue management software to set their room prices amounted to a per se illegal “hub-and-spoke” conspiracy to fix hotel prices in violation of Section 1 of the Sherman Act. Continue Reading California Court Dismisses Hotel Algorithmic Price Fixing Claims
New Jersey Court Dismisses Software Price-Fixing Claims Against Atlantic City Casinos
On September 30, a New Jersey federal court dismissed with prejudice an antitrust class action complaint alleging that several Atlantic City hotel operators engaged in a per se illegal “hub-and-spoke” price-fixing conspiracy through their use of software algorithms to set room rental rates. Cornish-Adebiyi v. Caesars Entertainment, No. 1:23-CV-02536 (D.N.J.).
According to the court, class plaintiffs’ allegations concerning Atlantic City hoteliers suffered from the “same factual deficiencies identified” by a Nevada federal court in Gibson v. Cendyn Group, No. 2:23-cv-00140 (D. Nev.), which rejected price-fixing allegations arising from Las Vegas hotels’ use of the same software. The court concluded that, in both cases, plaintiffs failed to plausibly allege the existence of unlawful agreements between the hotels at the “rim” of the alleged “hub-and-spoke” price-fixing conspiracy for several reasons.Continue Reading New Jersey Court Dismisses Software Price-Fixing Claims Against Atlantic City Casinos
No Dice: Nevada Court Dismisses with Prejudice Algorithmic Price Fixing Theories in Vegas Hotels Case
On May 8, a Nevada federal court dismissed with prejudice a class action complaint alleging that several Las Vegas hotel operators violated Section 1 of the Sherman Act by agreeing to set hotel room prices using pricing algorithms from the same vendor. The decision, Gibson v. Cendyn Group, No. 2:23-cv-00140 (D. Nev. 2024), follows the court’s October 24, 2023, dismissal of plaintiffs’ original complaint, which rejected plaintiffs’ allegations of a per se unlawful price-fixing conspiracy but granted leave to amend based on a Rule of Reason theory. Continue Reading No Dice: Nevada Court Dismisses with Prejudice Algorithmic Price Fixing Theories in Vegas Hotels Case
Brief Stay: Vegas Hotel Case Dismissed
On October 24, a Nevada federal court dismissed a class action complaint against operators of hotels on the Las Vegas Strip alleging that defendants’ use of similar room-pricing algorithms constituted a per se illegal price-fixing agreement under Section 1 of the Sherman Act. The decision, Gibson v. MGM Resorts International, No. 2:23-cv-00140 (D. Nev. 2023), rejected plaintiffs’ allegations of a per se illegal agreement among competitors or a hub and spoke conspiracy but granted leave to amend to plead a Rule of Reason theory.
Algorithmic pricing refers to the use of software tools, typically offered by vendors, that include historical and/or contemporaneous data to dynamically propose prices to businesses. In Gibson, plaintiffs alleged that Las Vegas hotel operators Caesars, Treasure Island, Wynn, and MGM violated Section 1 by “agreeing to all use pricing software marketed by the same company” resulting in “higher prices for hotel rooms than the market could otherwise support.” Continue Reading Brief Stay: Vegas Hotel Case Dismissed