Ninth Circuit Ruling Bolsters Legality of Algorithmic Pricing—Key Implications Highlighted by Berger Montague

San Francisco, CA – The Ninth Circuit Court of Appeals delivered a landmark decision in Gibson v. Cendyn Group LLC, clearing Las Vegas hotel‑casinos—including Caesars Entertainment and Wynn Resorts—of antitrust claims tied to the use of algorithmic pricing software. The court upheld dismissal of the case, ruling that awareness of competitors’ use of the same pricing tool alone did not amount to an unlawful agreement under Section 1 of the Sherman Act.

Berger Montague Shareholder and San Francisco Bay Area Office leader Joshua P. Davis expressed concern that the ruling may inadvertently enable anticompetitive behavior:

The appellate decision “moves the needle in the direction of saying, ‘use computers, use algorithms, use AI,’ as it becomes ever more sophisticated to cause all the harms that the antitrust laws were designed to prevent,” said Mr. Davis. “Not only will the ruling encourage companies to engage in anticompetitive behavior, but it also puts ‘tremendous pressure on good actors’ to engage in that conduct,” Davis said. “If you don’t, you may be driven out of business because you are trying to compete the right way.”

Read more in Bloomberg Law Algorithmic Pricing Gets Boost in Ninth Cir. Hotel-Casino Ruling (August 19, 2025).

Berger Montague is one of the nation’s preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. With more than $2.4 billion in 2025 post-trial judgments alone, the Firm is a leader in the fields of complex litigation, antitrust, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For over 55 years, Berger Montague has played leading roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.

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