Expedia 2009 Annual Report Download - page 37

municipal ordinance. The lawsuit purports to assert claims for violation of that ordinance, conversion, imposition
of a constructive trust, civil conspiracy, and demand for accounting. The complaint seeks damages in an
unspecified amount. On January 19, 2010, the court ruled in favor of defendants on their motion for summary
judgment dismissing plaintiffs’ claims with prejudice
Jefferson City, Missouri Litigation. On June 27, 2007, Jefferson City, Missouri filed a putative class action
in state court against a number of internet travel companies, including hotels.com, Hotwire and Expedia.
Jefferson City v. Hotels.com, L.P., et al., 07AC-CC0055 (Circuit Court of Cole County). 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 Missouri’s Merchandising
Practices Act, conversion, unjust enrichment, breach of fiduciary duties, constructive trust, and declaratory
judgment. The complaint seeks injunctive relief and damages in an unspecified amount. On November 5, 2007,
the defendants’ filed a motion to dismiss the plaintiff’s lawsuit. On June 19, 2008, the court granted in part and
denied in part defendants’ motion to dismiss the lawsuit. Settlement has been reached.
City of Oakland, California Litigation. On June 29, 2007, the city of Oakland filed an individual lawsuit in
federal court against a number of internet travel companies, including hotels.com, Hotwire and Expedia. City of
Oakland v. Hotels.com, L.P., et al., C-07-3432 (United States District Court, Northern District of California). 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. The complaint seeks
injunctive relief and damages in an unspecified amount, including punitive damages and restitution. On
September 18, 2007, the defendants filed a motion to dismiss the lawsuit. On November 6, 2007, the court
granted the defendant’s motion to dismiss for failure to exhaust administrative remedies. The Plaintiff filed a
notice of appeal on December 6, 2007. On July 16, 2009, the Ninth Circuit affirmed the dismissal. On
September 9, 2009, the court dismissed the case. Hotels.com and Expedia have received notice of audit from the
city.
Mecklenburg County Litigation. On January 10, 2008, the county of Mecklenburg, North Carolina filed an
individual lawsuit in state court against a number of internet travel companies, including Expedia, hotels.com,
and Hotwire. County of Mecklenburg v. Hotels.com L.P., et al., (General Court of Justice, Superior Court
Division, Mecklenburg County, North Carolina). The complaint alleges that the defendants have failed to pay to
the county hotel accommodations taxes as required by municipal ordinance. The complaint purports to assert
claims for violation of the local ordinance, as well as claims for declaratory judgment, injunction, conversion,
constructive trust, accounting, unfair and deceptive trade practices and agency. The complaint seeks damages in
an unspecified amount. On April 4, 2007, the court consolidated the Wake County, Dare County, Buncombe
County, and Cumberland County lawsuits. On May 9, 2007, the defendants moved to dismiss the lawsuits. On
November 19, 2007, the court granted in part and denied in part defendants’ motion to dismiss the Mecklenburg
County lawsuit.
Cities of Goodlettsville and Brentwood, Tennessee Litigation. On June 2, 2008, the cities of Goodlettsville
and Brentwood, Tennessee filed a putative class action in federal court against a number of internet travel
companies, including Expedia, hotels.com, and Hotwire. City of Goodlettsville and City of Brentwood v.
Priceline.com, Inc., et al., 3-08-0561 (United States District Court for the Middle District of Tennessee). The
complaint alleges that the defendants have failed to pay to the cities hotel accommodations taxes as required by
municipal ordinance. The complaint purports to assert claims for violation of the local ordinance, as well as
claims for unjust enrichment and conversion. The complaint seeks damages in an unspecified amount. Plaintiffs
have voluntarily dismissed the city of Brentwood. On March 31, 2009, the court denied defendants’ motion to
dismiss. Defendants’ answers were filed on April 24, 2009. Plaintiffs’ motion for class certification is pending.
County of Monroe, Florida Litigation. On June 3, 2008, the county of Monroe, Florida filed an individual
action in federal court against a number of internet travel companies, including Expedia, hotels.com, and
Hotwire. County of Monroe, Florida v. Priceline.com, Inc., et al., 08-10044-CIV (United States District Court for
the Southern District of Florida). The complaint alleges that the defendants have failed to pay to the county hotel
accommodations taxes as required by municipal ordinance. The complaint purports to assert claims for violation
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