Expedia 2006 Annual Report Download - page 29

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.
The Court anticipates issuing a ruling on that motion on or about April 5, 2007.
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. Certification discovery is ongoing.
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
Eastern District of North Carolina. On March 14, 2006, the defendants filed a motion to dismiss the complaint.
Defendants removed the case to federal court on February 13, 2006. A hearing on defendants’ motion to
dismiss was held on October 17, 2006. The Court has not yet issued a ruling on that motion.
City of San Diego, California Litigation. On February 9, 2006, the city of San Diego, California filed an
action in state court against a number of internet travel companies, including Hotels.com, Hotwire and Expedia
Washington. City of San Diego v. Hotels.com, L.P. et al., (Superior Court for the County of San Diego). 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, for violation of
Section 17200 of the California Business and Professions Code, conversion, imposition of a constructive trust
and declaratory judgment. The complaint seeks damages and other relief in an unspecified amount. On July 12,
2006, this lawsuit was coordinated with the City of Los Angeles lawsuit (No. DC326693, Superior Court of
the State of California, Los Angeles County, Central District).
Orange County, Florida Litigation. On March 13, 2006, Orange County, Florida filed an action in state
court against a number of internet travel companies, including Hotels.com, Hotwire and Expedia Washington.
See Orange County et al v. Expedia, Inc., et al., 2006-CA-2104 Div. 39 (Circuit Court Ninth Judicial District,
Orange County, FL). The complaint alleges that the defendants have failed to pay the county hotel
accommodations taxes as required by municipal ordinance. The complaint seeks a declaratory judgment
regarding the county’s right to audit and collect tax on certain of the defendants’ hotel room transactions. The
case was removed to federal court on April 13, 2006. The federal court remanded the case to state court on
August 2, 2006. On February 2, 2007, the Court granted defendants’ motion to dismiss. On February 9, 2007,
the County filed a motion for rehearing, which is pending.
City of Atlanta, Georgia Litigation. On March 29, 2006, the city of Atlanta, Georgia filed suit against a
number of internet travel companies, including Hotels.com, Hotwire and Expedia Washington. See City of
Atlanta, Georgia v. Hotels.com, L.P., et al., 2006-CV-114732 (Superior Court of Fulton County, Georgia). The
complaint alleges that the defendants have failed to pay to the city hotel accommodations taxes as required by
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