Judge weighs discovery motion in lawsuit alleging travel sites owe Nevada millions in taxes

A long-running lawsuit involving major online travel companies, including Expedia, Orbitz, Travelocity, Priceline, and Hotels.com, has returned to Clark County District Court. The case, filed in 2020 by Sig Rogich and Mark Fierro on behalf of the state, alleges that these companies used a pricing structure to charge consumers taxes based on retail rates while remitting taxes to Nevada based on lower wholesale rates, allegedly pocketing the difference.

During a recent hearing, Judge Mark Denton heard arguments regarding a motion to compel discovery responses under the False Claims Act. Plaintiffs' attorney Dominic Gentile argued that the law allows for liability when a party knowingly causes false or incomplete information to be submitted to the government. Conversely, defense attorneys argued that the plaintiffs are attempting to improperly expand the scope of the case and should limit discovery to the relevant statutory period starting in 2015.

A significant point of contention is whether plaintiffs can access "discovery sharing" materials from similar litigation in other jurisdictions to understand the companies' national transaction structures. The outcome of this litigation is significant, as plaintiffs estimate the disputed tax revenue could exceed $1 billion, which would fund essential state and local programs such as education and tourism promotion.

(Source：Las-vegas Review Journal)