A legal fight alleging high-profile online travel companies avoided paying hundreds of millions of dollars in hotel room taxes in Nevada can move forward, the Nevada Supreme Court ruled after the companies tried to get the lawsuit dropped.
The decision comes out of a 2020 complaint that claims the companies negotiated with hotels to rent a room at a wholesale rate, but then marked up the price for consumers to the retail rate.
The travel companies allegedly calculated their tax obligations at the wholesale rate but collected taxes at the retail rate and pocketed the difference.
The suit seeks damages on behalf of the state against some of the biggest online booking businesses, including Orbitz, Travelocity, Expedia, Priceline and Hotels.com.