Expedia 2007 Annual Report Download - page 29

damages and other relief in an unspecified amount. On November 28, 2005, defendants removed this action to
the United States District Court for the Southern District of Illinois. On January 17, 2006, the defendants
moved to dismiss the complaint. On July 12, 2006, the Court granted in part and denied in part defendants’
motion to dismiss. On August 1, 2007, plaintiff filed a motion for class certification. On February 12, 2008,
the court issued an order stating that a hearing on plaintiff’s motion for class certification was not necessary
and that plaintiff’s motion was under advisement.
City of Findlay, Ohio Litigation. On October 25, 2005, the city of Findlay, Ohio filed a purported state
wide class action in state court against a number of internet travel companies, including Hotels.com, Hotwire
and Expedia Washington. City of Findlay v. Hotels.com, L.P., et al., No. 2005-CV-673 (Court of Common
Pleas of Hancock County, Ohio). The complaint alleges that the defendants have failed to pay to the city hotel
occupancy taxes as required by municipal ordinance. The complaint purports to assert claims for violation of
that ordinance, violation of the consumer protection act, conversion imposition of a constructive trust and
declaratory relief. The complaint seeks damages and other relief in an unspecified amount. On November 22,
2005, defendants removed the case to the United States District Court for the Northern District of Ohio. On
January 30, 2006, the defendants moved to dismiss the case. On July 26, 2006, the Court granted in part and
denied in part defendants’ motion to dismiss. Discovery is ongoing. The court has consolidated this lawsuit
with the lawsuit filed by the cities of Columbus and Dayton, Ohio.
City of Chicago Litigation. On November 1, 2005, the city of Chicago, Illinois filed an action in state
court against a number of internet travel companies, including Hotels.com, Hotwire and Expedia Washington.
City of Chicago, Illinois v. Hotels.com, L.P., et al., No. 2005 L051003 (Circuit Court of Cook County). The
complaint alleges that the defendants have failed to pay to the city the hotel accommodations taxes as required
by municipal ordinance. The complaint purports to assert claims for violation of that ordinance, conversion,
imposition of a constructive trust and demand for a legal accounting. The complaint seeks damages, restitution,
disgorgement, fines, penalties and other relief in an unspecified amount. On January 31, 2006, the defendants
moved to dismiss the complaint. A hearing on defendants’ motion to dismiss was held on January 16, 2007.
On September 27, 2007, the court denied the defendants’ motion to dismiss.
City of Rome, Georgia Litigation. On November 18, 2005, the city of Rome, Georgia, Hart County,
Georgia, and the city of Cartersville, Georgia filed a purported state wide class action in the United States
District Court for the Northern District of Georgia against a number of internet travel companies, including
Hotels.com, Hotwire and Expedia Washington. City of Rome, Georgia, et al. v. Hotels.com, L.P., et al.,
No. 4:05-CV-249 (U.S. District Court, Northern District of Georgia, Rome Division). The complaint alleges
that the defendants have failed to pay to the county and cities the hotel accommodations taxes as required by
municipal ordinances. The complaint purports to assert claims for violation of excise and sales and use tax
ordinances, conversion, unjust enrichment, imposition of a constructive trust, declaratory relief and injunctive
relief. The complaint seeks damages and other relief in an unspecified amount. On February 6, 2006, the
defendants moved to dismiss the complaint. On May 9, 2006, the Court granted in part and denied in part
defendants’ motion to dismiss. On June 8, 2006, plaintiffs’ filed an amended complaint adding 16 more
municipalities and political subdivisions as named plaintiffs. On February 9, 2007, the defendants filed a
motion for summary judgment based on plaintiffs’ failure to exhaust their administrative remedies. On May 10,
2007, the court denied, without prejudice, defendants’ motion for summary judgment based on plaintiff’s
failure to exhaust administrative remedies, but stayed the litigation, concluding that the plaintiffs must exhaust
their administrative remedies before continuing to litigate their tax claims.
Pitt County, North Carolina Litigation. On December 1, 2005, Pitt County, North Carolina filed a
purported state wide class action in state court against a number of internet travel companies, including
Hotels.com, Hotwire and Expedia Washington. Pitt County, et al. v. Hotels.com, L.P. et al., No. 05-CVS-3017
(State of North Carolina, Pitt County, General Court of Justice, Superior Court Division). The complaint
alleges that the defendants have failed to pay to the city hotel accommodations taxes as required by municipal
ordinance. The complaint purports to assert claims for violation of that ordinance, violation of the deceptive
trade practices act, conversion, imposition of a constructive trust and a declaratory judgment that defendants
have engaged in unlawful business practices. The complaint seeks damages and other relief in an unspecified
amount. On February 13, 2006, the defendants removed the action to the United States District Court for the
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