Hotel groups fail to get collusion lawsuit dismissed
A group of global hotel chains failed to dismiss a class action lawsuit alleging they conspired in a non-compete agreement.
The US District Court for the Northern District of Illinois allowed the action to move forward against five hotel groups including Hyatt Hotels, Marriott International, and Wyndham Hotel Group.
The suit claims the companies decided not to advertise against each other on online travel agencies.
They also conspired not to compete in search results, the lawsuit said.
"These allegations show, at best, that defendants had an opportunity to conspire; they do not support an inference that a conspiracy occurred," Judge Rebecca Pallmeyer wrote in allowing the case to move forward.
The hotels argued lead plaintiff Karen Tichy was not materially affected by the allegations.
They also cite internet searches for one hotel brought up advertisements for competitors, showing there was no unlawful anti-competitive action.
The case, which was filed last year, alleges the collusion began shortly after executives met at a hotel industry conference in 2014.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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