The US Court of Appeals for the Third Circuit has reinstated a proposed class action lawsuit targeting Atlantic City casino operators. The three-judge panel reversed the October 2024 dismissal issued by the US District Court for the District of New Jersey.
The revived litigation focuses on room rate strategies employed by several casino-hotels in the region. Plaintiffs contend that these properties, in coordination with software provider Cendyn Group, utilize an AI-powered revenue management platform to set accommodation prices. The complaint asserts that this automated pricing framework limits competitive market dynamics and influences consumer spending.
Legal Proceedings and Next Steps
The appellate court’s recent order restores the case for further judicial review. Proceedings will now return to the district court, where the AI pricing allegations will undergo continued examination.
Federal judges initially rejected the antitrust filing last October, ruling that the proposed class action failed to satisfy procedural standards. That earlier decision prompted the current appeal, which successfully overturned the district court’s stance.