Orbitz 2008 Annual Report Download - page 36

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Litigation Relating to Hotel Occupancy Taxes
Certain of our subsidiaries and affiliates, including Orbitz, Inc., Orbitz, LLC, Trip Network, Inc. (d/b/a CheapTickets), Travelport Americas, LLC (f/k/a
Cendant Travel Distribution Services Group, Inc.), and Internetwork Publishing Corp. (d/b/a Lodging.com), are parties to various cases brought by municipalities
and other governmental entities involving hotel occupancy taxes and our merchant hotel business model. Some of the cases are purported class actions and most
of the cases were brought simultaneously against other Internet travel companies, including Expedia, Travelocity and Priceline. The cases allege, among other
things, that we violated the jurisdictions' hotel occupancy tax ordinance with respect to the charges and remittance of amounts to cover taxes under the ordinance.
While not identical in their allegations, the cases generally assert similar claims, including violations of local or state occupancy tax ordinances, violations of
consumer protection ordinances, conversion, unjust enrichment, imposition of a constructive trust, demand for a legal or equitable accounting, injunctive relief,
declaratory judgment, and in some cases, civil conspiracy. The plaintiffs seek relief in a variety of forms, including: declaratory judgment, full accounting of
monies owed, imposition of a constructive trust, compensatory and punitive damages, disgorgement, restitution, interest, penalties and costs, attorneys' fees, and
where a class action has been claimed, an order certifying the action as a class action.
An adverse ruling in one or more of these cases could require us to pay tax retroactively and prospectively and possibly penalties, interest and fines. The
proliferation of additional cases could result in substantial additional defense costs.
City or County Filing
Litigation
Date Litigation
Instituted
Court Where Litigation is Pending
City of Los Angeles* December 30, 2004 Superior Court for the State of California, County of Los
Angeles
City of Fairview Heights* October 5, 2005 United States District Court for the Southern District of Illinois
City of Findlay, Ohio October 25, 2005 United States District Court for the Northern District of Ohio
City of Chicago, Illinois November 1, 2005 Circuit Court of Cook County, Illinois
City of Rome, et al.* November 18, 2005 United States District Court for the Northern District of Georgia
Pitt County, North Carolina* December 1, 2005 United States Court of Appeals for the Fourth Circuit
City of San Diego, California February 9, 2006 Superior Court for the State of California, County of Los
Angeles
Case was coordinated with the City of Los Angeles case (above)
on July 12, 2006
Orange County, Florida, et al. March 13, 2006 Florida Fifth District Court of Appeal
City of Atlanta, Georgia March 29, 2006 Supreme Court of Georgia
City of Charleston, South Carolina April 26, 2006 United States District Court for the District of South Carolina
City of San Antonio, Texas, et al.* May 8, 2006 United States District Court for the Western District of Texas
Town of Mt. Pleasant, South Carolina May 23, 2006 United States District Court for the District of South Carolina
Case was coordinated with the City of Charleston case (above)
on April 26, 2007
Columbus, Georgia June 7, 2006 Superior Court of Muscogee County, Georgia
29
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008