07:16 AM EDT, 07/21/2025 (MT Newswires) -- Airbnb ( ABNB ) is facing a lawsuit from Los Angeles, which accuses the home rental company of allowing price gouging on at least 2,000 properties during January's Southern California wildfires, City Attorney Hydee Feldstein Soto said Friday.

Soto said the complaint filed in Los Angeles Superior Court alleges that rental prices on Airbnb ( ABNB ) rose more than 10%, violating a California law that prohibits such increases in essential goods and services during a state of emergency.

While Airbnb ( ABNB ), which holds about 80% of the city's short-term rental market, has taken steps to curb price gouging, evidence suggests the practice may still be occurring, Soto said.

The lawsuit also claims Airbnb ( ABNB ) misled renters by falsely stating that hosts and property locations on its platform are 'verified', when some listings allegedly do not exist.

The suit accuses Airbnb ( ABNB ) of violating California's unfair competition law and seeks an injunction to stop illegal rent hikes during emergencies, as well as civil fines of up to $2,500 per violation, it added.

Airbnb ( ABNB ) did not immediately respond to MT Newswires' request for comment.