In a surprising turn of events, a class action lawsuit alleging hotel rate-fixing in Atlantic City has been dismissed by a federal judge. The lawsuit, which was filed on behalf of consumers who stayed at a number of Atlantic City hotels between 2009 and 2016, claimed that several major hotel chains conspired to fix room rates in violation of antitrust laws.
The lawsuit alleged that the defendants, including Marriott, Hilton, and Sheraton, among others, engaged in a conspiracy to fix room rates in Atlantic City in order to maximize profits at the expense of consumers. The plaintiffs claimed that the hotels coordinated their pricing strategies through a shared reservation system, which allowed them to artificially inflate room rates and prevent price competition.
However, in a ruling issued last week, U.S. District Judge Mary Cooper dismissed the lawsuit, citing a lack of evidence to support the plaintiffs’ claims. In her decision, Judge Cooper noted that the plaintiffs failed to provide any specific evidence of a coordinated conspiracy among the defendants, and that the information presented was largely based on speculation and conjecture.
The dismissal of the lawsuit comes as a blow to the plaintiffs, who were seeking damages for the alleged overcharges they incurred while staying at Atlantic City hotels. The plaintiffs had argued that the rate-fixing scheme cost them hundreds of dollars in excess fees over the course of several years, and had hoped to recoup their losses through the class action lawsuit.
Despite the setback, the plaintiffs’ attorney indicated that they may appeal the decision in hopes of overturning the dismissal and bringing their case to trial. In the meantime, the defendants have welcomed the ruling, stating that they are pleased with the outcome and believe that the lawsuit was without merit.
The dismissal of the class action lawsuit is sure to have far-reaching implications for the hotel industry in Atlantic City and beyond. It remains to be seen whether other similar lawsuits will be filed in the future, or if this ruling will serve as a deterrent to potential litigation in the industry.
As the legal battle over hotel rate-fixing in Atlantic City continues to unfold, consumers are left to wonder whether they will ever see justice served in this case. In the meantime, hotels in the popular tourist destination are likely to continue operating as usual, with rates set based on market demand rather than alleged collusion among competitors.