Sept 2 (Reuters) - Commercial real estate data and
analytics company CoStar ( CSGP ) and a group of high-end hotels
have convinced a U.S. judge to dismiss a consumer lawsuit
claiming they improperly shared revenue and other data to keep
room prices artificially high.
Seattle-based U.S. District Judge Robert Lasnik on Friday
said the consumers had not presented enough evidence for now to
show that CoStar ( CSGP ) and six hotel operators, including Hilton
, Hyatt and Marriott ( MAR ), agreed to illegally
share information on prices.
The consumers had alleged that hotels were violating
antitrust law by sharing prices, room supply data and future
plans, allowing them to inflate prices in Washington, San
Francisco, New York, Nashville, Austin and other cities.
Lasnik's order gave the plaintiffs a chance to amend their
lawsuit and try to persuade him a second time.
CoStar ( CSGP ) general counsel Gene Boxer in a statement said the
company welcomed the decision.
"This lawsuit has never made any sense, and dismissal of the
entire case is and was inevitable," Boxer said. "We look forward
to the case checking out for good shortly."
Hilton, Hyatt and Marriott ( MAR ) did not immediately respond to
requests for comment, and neither did a lead attorney for the
plaintiffs.
CoStar ( CSGP ) and the hotels have denied any wrongdoing.
The lawsuit, filed last year, said hotels were using
CoStar's ( CSGP ) Smith Travel Research (STR) reports, which advertise
"performance benchmarking and comparative analytics" for the
hotel industry, to coordinate on room pricing.
CoStar ( CSGP ) and the hotels in court filings defended the reports,
which they said feature historical data on room availability and
revenue.
Lasnik said the plaintiffs were missing a "key ingredient"
in their lawsuit. The consumers, he said, had not shown that the
actual price of a hotel was either a required input into Smith
Travel Reports, or an output from the reports to the hotels.
The judge's order was the latest setback for plaintiffs
suing over hotel room prices. A U.S. appeals court last month
ruled for a group of Las Vegas hotels that were accused of
conspiring to overcharge guests.
The case is Jeanette Portillo et al v. CoStar Group ( CSGP ) et al,
U.S. District Court for the Western District of Washington, No.
2:24-cv-00229.
For plaintiffs: Steve Berman of Hagens Berman Sobol Shapiro
For CoStar ( CSGP ): Lawrence Buterman of Latham & Watkins
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