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$55M Settlement Reached in Online Hotel Booking Sites Class Action Lawsuit

Los Angeles, CA: A $55 million settlement has been reached in the unfair business practices practices class action pending against LP, Expedia Inc., Hotwire Inc. and eight other online travel companies.

District Judge Orlando Garcia ordered the defendants to pay the settlement, effectively ending allegations the companies failed to collect and remit hotel occupancy taxes to cities in Texas.

The lawsuit, brought by municipalities in Texas, alleged the defendants owed taxes calculated on the total retail amount charged to customers, not the discounted wholesale room rate customers pay hotels through the booking companies.

The lawsuit is entitled City of San Antonio, Texas, et al. v. LP, et al., Case No. SA-06-CA-381-OG, U.S. District Court, Western District of Texas, San Antonio Division.

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Last updated on Apr-8-13

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