Orbitz 2008 Annual Report Download - page 35

domestic operations in various cities, including New York, Washington D.C. and San Francisco. We lease approximately 53,000 square feet of office space for
ebookers in various countries, including the U.K., Finland, Germany, Sweden and Switzerland. In addition, we lease approximately 42,000 square feet of office
space for HotelClub, primarily in Australia.
We believe that our existing facilities are adequate to meet our current requirements and that additional space will be available as needed to accommodate
any further expansion of our operations.
Item 3. Legal Proceedings.
We and our subsidiaries are parties to various legal proceedings, including contract disputes, consumer claims, tax litigation, disputes regarding the alleged
infringement of third party intellectual property rights, and other claims. The costs of defense and amounts that may be recovered in certain matters may be
covered by insurance. The following list identifies all litigation matters that we believe are potentially material to our financial position or results of operations,
as well as other matters that may be of particular interest to our stockholders.
Consumer Class Actions
In re Orbitz Taxes and Fees Litigation. On May 24, 2005, a consolidated class action complaint was filed in the Circuit Court of Cook County, Illinois
against Orbitz, LLC, Orbitz, Inc. and Cendant, Inc. This case purports to be a national class action brought by persons who paid a fee in connection with paying
for a hotel room through the Orbitz website from March 19, 2003 to the present. The plaintiff also seeks actual damages, attorneys' fees, costs, interest and
penalties on behalf of the purported class. On May 31, 2006, the Court dismissed Cendant from this case for a second time, and dismissed all of the claims except
for the plaintiff's Consumer Fraud and Deceptive Business Practices Act claim. On May 30, 2007, the plaintiff filed a motion for leave to file a Third
Consolidated Amended Class Action Complaint. This most recent complaint only asserts a claim under the Illinois Consumer Fraud and Deceptive Business
Practices Act and names only one class representative, an Illinois resident. The plaintiff alleges that Orbitz failed to provide proper disclosures to consumers
relating to fees charged by Orbitz when the consumer is booking a hotel room through the Orbitz website. Orbitz is also alleged to have misled consumers by
failing to break out the exact amount of the service fee in the taxes and fees line displayed to consumers before the booking is complete. On June 26, 2007, the
plaintiff filed a motion seeking an order certifying the action as a nationwide class action. On that same date, Orbitz filed a motion for summary judgment. At the
close of the December 19, 2007 hearing on both motions, the Court denied the plaintiff's motion for class certification and granted summary judgment in favor of
Orbitz. On January 17, 2008, the plaintiff filed its Notice of Appeal.
Ronald Bush, et al. v. CheapTickets, Inc., et al. On February 17, 2005, a class action complaint was filed in the Superior Court of the State of California,
County of Los Angeles on behalf of all Californians who were assessed a "Taxes/Fees" charge when paying for a hotel, motel, or resort room through the
defendants' websites. The complaint was brought against a number of Internet travel companies, including Trip Network, Inc. (d/b/a CheapTickets), Cendant
Corporation, Orbitz, Inc., and Orbitz, LLC. The plaintiffs assert claims for violation of the California Business and Professions Code, conversion, and imposition
of a constructive trust. The plaintiffs' claims are based on allegations that the defendants charged for taxes that were not legitimate in that they were not required
by the taxing authorities to be collected. The plaintiffs also allege that the defendants failed to disclose this improper practice. The plaintiffs seek an order
certifying the action as a class action, actual damages, punitive damages, restitution and/or disgorgement, attorneys" fees, costs, interest, and injunctive relief. On
July 1, 2005, the plaintiffs filed an amended complaint asserting claims under the California Business and Professions Code and the Consumers Legal Remedies
Act, breach of contract and breach of the implied covenant of good faith and fair dealing.
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Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008