Proposed Settlement Reached with Expedia Regarding Hotel Fees

Good news for Expedia customers today. Hagens Berman Sobol Shapiro LLP reached a proposed settlement with Expedia in a case we filed in 2005 on behalf of consumers that claimed the travel-booking giant defrauded consumers by repeatedly breaching its contractual obligations and charging service fees under false pretenses in millions of hotel transactions. The suit also alleged that Expedia violated the Consumer Protection Act.

The settlement is a good one – it provides consumers with $123.4 million in cash or Expedia credits for those covered by the settlement. The settlement covers anyone who purchased a hotel stay from Expedia between January 10, 2001 and June 11, 2008, and anyone who purchased travel packages from Expedia between Feb. 18, 2003 and Dec. 11, 2006 that included a hotel stay as part of the package.

If the court preliminarily approves the settlement, all parties will notify potential class members about the settlement and give everyone instructions on how to opt out or object to the settlement. The parties will seek preliminary approval on Aug. 10, 2009.

While this is great news for consumers, we need to urge patience. The wheels of justice turn slowly. Even if everything works perfectly, consumers won’t see any form of reimbursement until some time next year.

Check back here for details as they become available, or visit for more information.