Pasadena hotel agrees to pay 0,000 to settle lawsuit over price gouging after Eaton fire.
In a significant legal development, Langham Hotels Pacific Corporation, the owner of the Langham Huntington Pasadena, has agreed to pay 0,000 to settle allegations of price gouging related to the 2025 Los Angeles wildfires. The settlement was announced by the Los Angeles County District Attorney’s Office on July 13.
Of the total settlement amount, 0,000 will serve as civil penalties, while ,000 will cover investigative costs incurred by the District Attorney’s Office and the Los Angeles County Counsel’s Office. Although the hotel did not admit to any liability, it cooperated fully during the investigation, as stated by the district attorney’s office.
The lawsuit claimed that the hotel violated California’s anti-price-gouging and unfair competition statutes by charging more than 10 percent above its regular rates to evacuated guests during the crisis. The Eaton and Palisades fires, which sparked a wave of evacuations across Los Angeles County, prompted many residents to seek temporary shelter in hotels as they fled their homes.
In response to the allegations, hotel management explained that the price increases resulted from an automated pricing tool. Following the outbreak of the wildfires, this tool inadvertently set prices higher than intended. All affected guests received refunds, according to the hotel’s management, which emphasized their commitment to transparency and fairness. It was also noted that the hotel donated more than 1,100 complimentary room nights to support first responders and displaced individuals during the crisis.
The legal situation escalated quickly, as an emergency proclamation was issued on January 7, 2025, activating price gouging protections that remained in effect until March 29, 2026. As part of the settlement, Langham Hotels must enhance its pricing systems to prevent unlawful increases during declared emergencies. Eligible guests, who stayed at the hotel during the protected period and paid more than the maximum allowable rate, are to receive a total of at least 6,000 in refunds for the specified timeframe of January to April 2025. Any refunds that cannot be issued directly to guests will be forwarded to the Los Angeles County Department of Consumer and Business Affairs.
This case is part of a broader effort by local authorities to combat price gouging amid disasters. District Attorney Nathan Hochman condemned the practice, stating that it is unacceptable to exploit individuals gravely impacted by emergencies. Similar legal actions have been initiated against platforms like Airbnb and various landlords for alleged price gouging during the same wildfire crisis.
As a historical landmark in Pasadena and an established luxury resort for over a century, the Langham Huntington is characterized by its extensive amenities, including 379 guest rooms and fine dining options, making the price gouging allegations particularly notable against its luxury status. The implications of this settlement extend beyond mere financial penalties, highlighting the critical need for ethical practices in the hospitality industry, especially during times of crisis.
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