Aug 15 (Reuters) - Wynn Resorts ( WYNN ), Caesars and

Treasure Island convinced a U.S. appeals court on Friday to turn

back a consumer class action lawsuit accusing them of using

shared computer software algorithms to illegally coordinate on

Las Vegas hotel room prices.

Affirming a lower court decision, a three-judge panel of

the San Francisco-based 9th U.S. Circuit Court of Appeals said

it wasn't enough for the consumers to show that the rival

resorts used the same revenue-management service provider amid

an alleged rise in room rental rates.

The plaintiffs had accused the resort companies of colluding

to overcharge guests by feeding sensitive internal information

to a shared software platform operated by Cendyn that offered

pricing recommendations. They appealed after a judge in Nevada

dismissed the lawsuit in May.

The 9th Circuit panel said the consumers had not shown there

was any agreement among the hotels to follow Cendyn's pricing

recommendations. The court also said that hotels' independent

use of the same software did not restrain their abilities to

rent hotel rooms.

"Rather than eliminating competition, pricing one's hotel

rooms in a manner calculated to maximize profits is how one

competes," wrote Circuit Judge Carlos Bea, joined by Circuit

Judge Ana de Alba and U.S. District Court Judge Jeffrey Brown.

A lead attorney for the consumers did not immediately

respond to a request for comment, and neither did the lawyer who

argued for the defendants.

Cendyn said it welcomed the court's order. Wynn declined to

comment. Caesars and Treasure Island did not immediately respond

to requests for comment.

The hotels and software provider Cendyn have denied any

wrongdoing.

U.S. courts are facing an increasing number of lawsuits

claiming hotels and other industries unlawfully use revenue

maximization platforms to fix prices.

Last October, a group of major casino-hotel operators in

Atlantic City defeated a proposed consumer class action accusing

them and a revenue management platform of overcharging for room

rentals.

In dismissing the lawsuit in Las Vegas, Chief U.S. District

Judge Miranda Du said the system generated pricing

recommendations that hotels were not bound to follow.

The consumers in their appeal countered that even

non-binding guidelines such as price recommendations can be

considered an "unreasonable" restraint within a competitive

market.

The case is Richard Gibson et al v. Cendyn Group et al, 9th

U.S. Circuit Court of Appeals, No. 24-3576.

For plaintiffs: Steve Berman of Hagens Berman Sobol Shapiro

For defendants: Melissa Sherry of Latham & Watkins

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