07:07 AM EDT, 08/20/2025 (MT Newswires) -- (Updates with Booking's response in the fourth and fifth paragraphs.)

Booking Holdings ( BKNG ) reached a $9.5 million settlement with Texas Attorney General Ken Paxton over a lawsuit related to junk fee practices, the Attorney General's office said Tuesday.

The lawsuit alleged that the company enticed consumers with low rates that weren't available and hid certain mandatory fees by combining them with taxes owed to the government, the statement said.

The settlement also requires Booking to divulge fees added to a hotel room's price upfront so that consumers can compare prices more efficiently, Paxton's office said.

A Booking spokesperson told MT Newswires in an emailed response that it disagreed with the Texas Attorney General's characterization of the settlement and rejected any suggestion that it engaged in "unlawful, deceptive or unethical practices."

"Booking Holdings ( BKNG ) has long supported a clear national standard for displaying total prices, and we remain committed to transparency and providing travelers with accurate information," the spokesperson said. "This settlement, which includes no admission of wrongdoing, allows us to avoid prolonged litigation and move forward, continuing to deliver trusted services to consumers and small businesses in Texas and beyond."