Product Liability & Toxics Law News

Expedia Allegedly Overcharges Taxes, Fees; Faces RICO Suit

Dec. 18, 2018, 8:33 PM

Expedia Inc. overcharged customers at least $95 million in taxes and fees when booking through reservations.com, a new class suit claims.

Lead plaintiff Joseph Church and members of the proposed class have overpaid the true taxes and fees owed, the complaint alleges.

Expedia determines the amount of taxes and fees charged by its subsidiary hotels.com, the complaint says.

The amount Expedia collects is significantly more than the sum actually owed to the government for taxes, government fees, and other charges, the complaint alleges.

Expedia pockets the tax overcharges as additional profit, the complaint says.

Expedia and subsidiaries EAN.com, Travelscape, and Hotels.com violated the Racketeer Influenced and Corrupt Organizations Act by deceiving consumers into believing they were paying legitimate taxes and fees, the complaint alleges.

The RICO claims, which allow for treble damages, include allegations of tax, mail, and wire fraud.

The complaint also alleges conversion, misappropriation, unjust enrichment, and constructive trust.

Expedia did not immediately respond to request for comment.

Hagens Berman Sobol Shapiro LLP represents the proposed class.

The case is Church v. Expedia, Inc., W.D. Wash., No. 18-cv-1812, complaint filed 12/17/18.

To contact the reporter on this story: Peter Hayes in Washington at PHayes@bloomberglaw.com

To contact the editors responsible for this story: Jo-el J. Meyer at jmeyer@bloomberglaw.com; Nicholas Datlowe at ndatlowe@bloomberglaw.com

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