Orbitz 2009 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2009 Orbitz annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

damages, restitution and/or disgorgement, attorneys’ fees, costs, interest, and injunctive relief. On October 15,
2008, the plaintiffs filed a second amended complaint removing all other Internet travel companies except for
Trip Network, Inc., Orbitz, Inc., and Orbitz, LLC and adding “Orbitz Worldwide.” The second amended
complaint asserts 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. On
August 22, 2008, the defendants filed a motion seeking a stay of all further proceedings pending final
determination of the appeal in the In re Orbitz Taxes and Fees Litigation case described above. On October 10,
2008, the court granted the motion to stay as to the claims asserted against Orbitz, Inc. and Orbitz, LLC, but
denied it as to the claims asserted against Trip Network, Inc. and Orbitz Worldwide.
Litigation Relating to Hotel Occupancy Taxes
Orbitz Worldwide, Inc. and certain of its 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. 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
28