Third Circuit Allows Algorithmic Price-Fixing Claims to Survive Dismissal
Companies using shared third-party pricing algorithms that process competitors' non-public pricing or occupancy data now face viable algorithmic price-fixing antitrust claims after the Third Circuit became the first federal appellate court to reverse dismissal of such a suit.
On July 29, 2026, the Third Circuit ruled in Cornish-Adebiyi v. Caesars Entertainment that a class action alleging Atlantic City casino-hotels fixed guest room rates via a shared pricing algorithm could proceed, reversing a district court dismissal. The court held the complaint plausibly alleged a horizontal antitrust conspiracy, finding the algorithm’s pooling of competitors’ non-public, real-time pricing and occupancy data, plus a 90% adherence rate to its recommendations, supported an inference of collusion. The ruling diverges from the 2025 Ninth Circuit’s Gibson decision, which dismissed similar claims due to no allegations of confidential data sharing between competitors. In-house counsel should review their organizations’ pricing tool terms and data sharing practices to assess antitrust risk.