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