A lawsuit alleging high-profile online travel companies avoided paying hundreds of millions of dollars in hotel room taxes in Nevada has overcome a major legal hurdle and is now on a path to trial.
Clark County District Judge Mark Denton issued an order July 13 refusing to reconsider a decision denying a motion filed by the travel companies to dismiss the case. Denton stayed the order for 21 days to allow the companies to decide whether to ask the Nevada Supreme Court to intervene in the matter.
The 2020 suit, filed by well-known Las Vegas communications consultants Sig Rogich and Mark Fierro, seeks damages on behalf of the state against the biggest names in the online booking business, including Orbitz, Travelocity, Expedia, Priceline and Hotels.com.
“We feel we are correct and we will win the lawsuit,” lead plaintiffs lawyer Dominic Gentile said.
That would be an enormous windfall for state and local governments dealing with an unstable economy and the ongoing COVID-19 pandemic, according to Gentile and his co-counsel, Michael Cristalli.
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More than $1 billion in lost revenues and damages could be recovered if the plaintiffs win a judgment at trial, Gentile said.
Gentile is hoping the Supreme Court will decide not to get involved in the case and make a quick determination whichever way it leans.
No trial date has been set, but Denton’s decision paves the way for...
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