A class-action lawsuit, which presented price-fixing claims against major Las Vegas hotels, has been dismissed by a federal judge. Thus, Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island scored a big victory in prolonged legal proceedings, which started over a year ago.

Lawsuit Alleges Price-Fixing Conspiracy Among Major Las Vegas Hotel Operators

The lawsuit was filed back in January 2023 by Seattle-based law firm Hagens Berman Sobol Shapiro on behalf of two tourists who sought repayment for alleged overcharges. The lawsuit accused major Las Vegas hotel operators such as Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island that they have made surreptitious agreements aiming to inflate room prices with the help of data-sharing software called Rainmaker. 

Allegedly the operators used the software developed by Florida-based Cyndyn Group to share sensitive pricing information among themselves, which then resulted in artificially high room rates.

The plaintiffs challenged the major Las Vegas operators under the Sherman Antitrust Act, which aims to prevent anti-competitive practices that could harm consumers.

In the recent hearing in connection with the case, US District Chief Judge Miranda Du dismissed the lawsuit, reported The Las Vegas Review-Journal. She stated that plaintiffs did not prove that there was in fact a clear price fixing agreement among the hotel operators.

Du’s decision followed another dismissal of the lawsuit that happened in October 2023. The plaintiffs then filed an amended complaint but still, the judge found their allegations insufficient to establish a plausible case of price-fixing.

Lawsuit Claims Bias in Vegas Hotel Pricing Software, Judge’s Ruling Highlights Gray Area

According to the claims in the lawsuit, using Rainmaker’s software affected the normal market competition as it provided biased pricing recommendations, which the plaintiffs claimed were in favor of the hotel operators. As a result, the room prices had higher rates for consumers. 

However, Judge Du pointed out that hotel operators do not have to align their prices with the suggestions from Rainmaker, which weakened the plaintiffs’ argument.

Hotel operators’ representatives hailed the decision but also stressed that they are committed to fair business practices.

At the same time, the legal representatives of the plaintiffs said that they are currently considering their options and may potentially file for an appeal.  

Last year in April, the Las Vegas hotel-casino operators also sought to dismiss the class-action lawsuit, refuting the plaintiff’s claims and dubbing them a conspiracy. 

Back then, Amanda Belarmino, an assistant professor at the William F. Harrah College of Hospitality at UNLV, also opposed the allegations as unfounded. She attributed the high room rates to implications following the removal of pandemic restrictions. 

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Business in Vancouver reported that a Canadian law firm has failed in its bid to have a CAD18 million ($13.4 million) lawsuit against them dismissed, which was filed by two international online gambling companies. However, the British Columbia Supreme Court ruled that the case should proceed.

Jazette and Go Forward Sue Beadle Defendants Over Alleged $13.4M Theft

The lawsuit was filed in 2019 by Jazette Enterprises Ltd. and Go Forward Solutions Ltd., companies based in Mauritius and St. Vincent and the Grenadines respectively, that operate an online gambling website. According to the plaintiffs, a sum of CAD18 million ($13.4 million) produced by the website was unlawfully taken in 2016 by some individuals associated with the enterprise, and subsequently transferred through a trust account administered by Beadle Raven.

Although the allegations have not been proven in court, the judge noted that it was clear from the evidence in the application that some CAD18 million ($13.4 million) did indeed pass through the trust account operated by the Beadle defendants. The matter is also the subject of litigation in Qatar.

To investigate the lost funds, the plaintiffs enlisted the services of a contractor. In October of the previous year, Charlotte Payne, one of the Jazette owners, was scheduled to participate in a discovery examination, which is a pre-trial procedure that allows parties in a civil dispute to obtain information from the other side. However, she ultimately declined to do so.

The plaintiffs then said that the contractor was the appropriate person to represent them for discovery. This led to an application by the Beadle defendants to have the case thrown out entirely for non-compliance.

Judge Orders Charlotte Payne to Attend Discovery Hearing

The judge rejected the request for dismissal, deeming it a particularly harsh measure since the plaintiffs proposed an alternative to Payne and the other Jazette owner Keith Helman and thus did not completely refuse the discovery process. 

The judge further noted the gravity of the CAD18 million ($13.4 million) claim. She ordered Payne to attend a discovery hearing, noting that the Beadle defendants have read her affidavit, in which she claims to have little relevant knowledge and are still insisting on interviewing her for discovery.

The judge expressed that the Beadle defendants may be making an unwise choice by exercising their right to discovery with a representative who is unlikely to provide information or admissions that can strengthen their defense against the plaintiffs’ claims. However, the judge noted that it is not the court’s place to question the Beadle defendants’ litigation strategy.

The judge also stated that although Payne had a back ailment, she would need to be accommodated but could not skip discovery entirely for that reason.

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Geolocation expertise provider Xpoint had its movement to dismiss associated the patent infringement case filed by competitor GeoComply granted by a federal courtroom in a key choice for the geolocation market.

Case Dismissed by Court docket

The ruling issued on Friday, February 10 by Decide William J. Bryson from the Federal Circuit within the District of Delaware discovered the geolocation patent of GeoComply to be invalid on the grounds that it makes an attempt to say a patent on material that can’t be patented and represents an entire win for Xpoint and all the geolocation market which can now be free and open to competitors.

“From the start of this litigation Xpoint has maintained that it has carried out its enterprise legally and appropriately,” commented Marvin Sanderson, chief govt officer of Xpoint, feeling “extraordinarily happy” with the ruling.

GeoComply launched the authorized case towards Xpoint in September final 12 months, claiming that Xpoint violated its patent dated again to 2016 overlaying a geolocation engine expertise invented by GeoComply chief govt officer and co-founder Anna Sainsbury.

GeoComply turned to the Delaware District Court docket searching for an “injunction to guard GeoComply’s investment-based threat” within the title of the general public curiosity and “to implement the Patent Act’s statutory proper to exclude others from working towards GeoComply’s patented invention.” Xpoint’s preliminary response was that the patent infringement claims are meritless.

Try to Preserve Monopoly

“As an organization, we remained assured that we might prevail on this matter as GeoComply’s allegations have been false, meritless, and a thinly veiled try to improperly preserve its monopoly on the gaming geolocation market,” Sanderson added.

Using its place as an early geolocation market entrant following the legalization of on-line sports activities playing within the US, GeoComply managed to amass a big market share however final 12 months its smaller competitor grabbed the eye with vital market development.

Final month, it turned apparent that GeoComply has no materials proof towards Xpoint and has constructed its case on a 3rd occasion after GeoComply filed a movement requesting the courtroom to compel the net gaming firm Out The Gate (OTG) to supply supplies associated to an inner on-line presentation throughout which it had been allegedly revealed that Xpoint had an identical code processes to GeoComply.

The courtroom ruling was additionally commented on by gaming {industry} professional Christian Goode, who’s satisfied that the choice would have an industry-wide influence, encouraging all disruptive startups and entrepreneurs.

“Geolocation is the one business-critical service offered to on-line gaming firms that beforehand lacked full and free competitors,” Goode stated, adamant that “gaming suppliers, gamers and regulators will profit from open competitors for this vital service.”

A important service for each operators and regulators, geolocation service suppliers assure that solely gamers situated within the state can have entry to on-line gaming actions.

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