July 18 (Reuters) - Los Angeles sued Airbnb ( ABNB ),

accusing the home rental company of allowing price gouging

affecting more than 2,000 properties during January's wildfires

in southern California, City Attorney Hydee Feldstein Soto said

on Friday.

Airbnb ( ABNB ) was accused of violating a California law that

prohibits prices of essential goods and services from rising

more than 10% following a state of emergency.

Governor Gavin Newsom declared a state of emergency in Los

Angeles on January 7, triggering the state's anti-gouging law,

and it has been extended several times.

Feldstein Soto said that while Airbnb ( ABNB ), with an estimated 80%

market share in the city, has taken steps to curtail price

gouging, "evidence indicates that illegal gouging on the site

continues and may be ongoing."

She also accused Airbnb ( ABNB ) of misrepresenting to prospective

renters that it has "verified" hosts and property locations on

its website, some of which don't exist.

A copy of the complaint was not immediately available.

In a statement, Airbnb ( ABNB ) said the company, Chief Executive

Brian Chesky, and its affiliated nonprofit Airbnb.org have

contributed nearly $30 million to fire recovery efforts,

including free emergency housing to nearly 24,000 people.

It also said Airbnb ( ABNB ) hosts receive error messages if they try

to boost prices more than 10% from pre-emergency rates.

The lawsuit accuses San Francisco-based Airbnb ( ABNB ) of violating

California's unfair competition law.

It seeks an injunction to stop illegal rents during the

state of emergency, plus civil fines of up to $2,500 per

violation, Feldstein Soto said.

The Southern California wildfires killed at least 30 people

and destroyed or damaged more than 16,000 structures.

Much of the damage came from the Palisades Fire in Pacific

Palisades and the Eaton Fire in Altadena. The fires charred an

area larger than Paris.