Circa Loyalty Program Leads To Class-Action Lawsuit

Article by : Erik Gibbs Dec 7, 2023

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Circa Hospitality Group, the downtown Las Vegas resort operator, is facing a class-action lawsuit filed in Clark County District Court. The lawsuit alleges that Circa failed to disclose fees and taxes associated with comps offered through its loyalty program, “Club One.”

Members of the loyalty program claim they were charged fictitious fees or taxes when using complimentary points for purchases at affiliated hotels—Circa, Golden Gate, and D. The class action potentially involves over 10,000 individuals, including those who visited the resorts and joined the Club One program.

Circa officials have not responded to requests for comments on the lawsuit as of Friday. The legal action, filed by attorneys Robert Eglet, Robert Adams, Artemus Ham, and Michael Kind on behalf of several individuals, including area residents and a Texas resident, seeks damages estimated at $3.75 million for the four-year duration of the comp program.

The lawsuit specifically names Circa Hospitality Group, Golden Gate, D, and Circa Resorts, along with unnamed subsidiaries and resort employees.

Additionally, the lawsuit contends that the defendants habitually diminished the comps pledged to the plaintiffs by deceptively applying false charges.

An example highlighted in the lawsuit involves Matthew Stokes, who, on August 21, reported purchasing a lunch meal at Saginaw’s Deli at Circa for $23.

The lawsuit details an incident involving Mr. Stokes, who expressed surprise when, in addition to the $23 he spent on a lunch meal at Saginaw’s Deli at Circa, the defendant’s point-of-sale system deducted an extra $1.93 labeled as ‘add-on tax’ from his earned comps balance.

This information is supported by a duplicate copy of the receipt presented in the court document. The lawsuit comprises six counts, including allegations of breach of contract, breach of implied covenant, deceptive trade practices, conversion, negligence, and misrepresentation.

The lawsuit is pursuing certification as a class action and seeks various remedies, including an order mandating Circa to halt any unlawful conduct, a declaration asserting that Circa must not diminish consumers’ earned comps through fictitious fees, and an acknowledgment that the defendant participated in deceptive trade practices.

The lawsuit also calls for unspecified actual, consequential, and punitive damages, the determination of which will occur during the trial. As of now, a trial date has not been set.