Orbitz 2010 Annual Report Download - page 27

The following list identifies all litigation matters for which we believe that an adverse outcome could be
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
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. On September 30, 2009, the
Appellate Court of Illinois affirmed the Circuit Court’s December 19, 2007 order granting summary judgment
in favor of Orbitz and denied the plaintiff’s motion for class certification. On January 27, 2010, the Illinois
Supreme Court denied the plaintiff’s Petition for Leave to File an Appeal, concluding this matter.
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’ 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 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. On September 21, 2009,
pursuant to the parties’ stipulated request for dismissal, the court dismissed the action with prejudice.
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.com), Travelport Inc. (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 online travel companies, including Expedia, Travelocity and Priceline. The cases
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