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Firm Files Class Action Alleging Price-Fixing by Major Atlantic City Casino-Hotels

Firm Files Class Action Alleging Price-Fixing by Major Atlantic City Casino-Hotels

Burns Charest attorneys, led by partner Christopher J. Cormier, have filed a class action alleging that some of the nation’s largest casino-hotel operators have used a shared pricing algorithm platform to artificially inflate the price of room rental rates at their Atlantic City properties. Filed in New Jersey federal court, the lawsuit names Caesars Entertainment Inc, MGM Resorts International, and Hard Rock International Inc., and their respective Atlantic City casino-hotels, as defendants, together with global hospitality technology company Cendyn Group LLC, which promotes and sells the shared pricing algorithm platform at the center of the alleged conspiracy.

The complaint alleges that the corporate parent defendants and their respective casino-hotels, including Harrah’s Atlantic City, Tropicana Atlantic City, and Borgata, and Cendyn have engaged in price-fixing conspiracy centered on the casino-hotels’ knowing shared use of Cendyn’s pricing algorithm platform to set room rates at supra-competitive levels.

Data presented in the complaint shows “substantial increases” in Atlantic City room rates but decreases in occupancy rates during the class period of mid-2018 to the present, with charges 25% higher in 2022 than in 2019, despite renting 5% fewer rooms. The lawsuit states that “no market factors” such as increased demand or rising costs “can explain the kind of increase in room rates and corresponding revenue that casino-hotel defendants each have obtained during the class period.”

To view the filing click here.

To read more coverage on this case, click for subscription-exclusive articles by Law360 and Reuters.