Expedia 2007 Annual Report Download - page 31

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defendants answered on July 7, 2006. On August 22, 2006, Hotels.com GP, LLC was voluntarily dismissed. On
April 26, 2007, the court entered an order consolidating the lawsuits filed by the City of Charleston and the
Town of Mt. Pleasant. On May 14, 2007, the plaintiff filed its first amended complaint. On June 4, 2007, the
defendants filed a motion to dismiss and on November 5, 2007, the court denied the defendants’ motion to
dismiss. On November 30, 2007, the defendants filed a motion for reconsideration or for certification of
interlocutory appeal. Trial is currently scheduled to begin on December 8, 2008.
City of San Antonio, Texas Litigation. On May 8, 2006, the city of San Antonio filed a putative
statewide class action in federal court against a number of internet travel companies, including Hotels.com,
Hotwire, and Expedia Washington. See City of San Antonio, et al. v. Hotels.com, L.P., et al., SA06CA0381
(United States District Court, Western District of Texas, San Antonio 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, common-law conversion, and declaratory
judgment. The complaint seeks damages in an unspecified amount, restitution and disgorgement. The
defendants filed a motion to dismiss on June 30, 2006. On August 28, 2006, the plaintiffs filed a motion for
class certification. On March 20, 2007, the court denied the defendants’ motion to dismiss. On May 16 and
17, 2007, the court held a hearing on plaintiff’s motion for certification. The court has not ruled on that
motion.
City of Gallup, New Mexico Litigation. On May 17, 2006, the city of Gallup, New Mexico filed a
putative statewide class action in state court against a number of internet travel companies, including
Hotels.com, Hotwire and Expedia Washington. See City of Gallup, New Mexico, et al. v. Hotels.com, L.P.,
et al., CIV-06-0549 JC/RLP (United States District Court, District of New Mexico). The case was removed to
federal court on June 23, 2006. The complaint alleges that the defendants have failed to pay to the city hotel
accommodations taxes as required by municipal ordinances. The complaint purports to assert claims for
violation of those ordinances, conversion, and declaratory judgment. The complaint seeks damages in an
unspecified amount, restitution and disgorgement. On July 31, 2006, the defendants filed a motion to dismiss.
On January 30, 2007, the Court granted in part and denied in part defendants’ motion to dismiss. On April 18,
2007, the court granted plaintiffs’ motion to dismiss its own lawsuit. On July 6, 2007, the City of Gallup
refiled its lawsuit. The defendants answered the complaint on August 27, 2007. Class certification discovery is
ongoing.
Town of Mt. Pleasant, South Carolina Litigation. On May 23, 2006, the Town of Mount Pleasant, South
Carolina filed suit in state court against a number of internet travel companies, including Hotels.com, Hotwire
and Expedia Washington. See Town of Mount Pleasant, South Carolina v. Hotel.com, et al., 2-06-CV-020987-
PMD (United States District Court, District of South Carolina, Charleston Division). The case was removed to
federal court on July 21, 2006. 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, conversion, constructive trust and legal accounting. The complaint seeks damages
in an unspecified amount. On August 22, 2006, Hotels.com GP, LLC was voluntarily dismissed The defendants
answered the complaint on September 15, 2006.. Discovery is ongoing. On April 26, 2007, the court
consolidated the lawsuits filed by the City of Charleston and the Town of Mt. Pleasant. On May 14, 2007, the
town filed its first amended complaint. On June 4, 2007, the defendants filed a motion to dismiss. On
November 5, 2007, the court denied the defendants’ motion to dismiss. On November 30, 2007, the defendants
filed a motion for reconsideration or for certification of interlocutory appeal.
Columbus, Georgia Litigation. On May 30, 2006, the city of Columbus, Georgia filed suit against
Expedia, Inc. and on June 7, 2006 filed suit against Hotels.com — both in state court. See Columbus,
Georgia v. Hotels.com, Inc., et al., 4:06-CV-80; Columbus, Georgia v. Expedia, Inc., 4:06-CV-79 (United States
District Court, Middle District of Georgia, Columbus Division). The cases were removed to federal court on
July 12, 2006. During this same time period, the city of Columbus filed similar lawsuits against other internet
travel companies. The complaints allege that the defendants have failed to pay the city hotel accommodations
taxes as required by municipal ordinance. The complaints purport to assert claims for violation of that
ordinance, unjust enrichment, imposition of a constructive trust, equitable accounting, and declaratory
judgment. The complaint seeks damages in an unspecified amount, restitution and disgorgement. The lawsuits
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