Judge weighs discovery motion in lawsuit alleging travel sites owe Nevada millions in taxes
By David Danzis
Published on May 8, 2026.
A long-running lawsuit alleging major online travel companies underpaid Nevada hotel room taxes has returned to Clark County District Court. The case involves allegations that companies used a pricing structure that allowed them to charge consumers taxes based on retail room rates while transferring taxes to Nevada based on lower wholesale hotel rates. Lawyers argued that the state’s False Claims Act allows liability where a party knowingly causes false information to be submitted to the government, even indirectly. A key issue is whether plaintiffs can obtain broad "discovery sharing" materials from related litigation in other jurisdictions, which they argue are necessary to understand the companies' practices. A trial has been scheduled for 2027.
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