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Nevada skydiving company alleges Groupon's conduct caused revenue loss

By Jenie Mallari-Torres | Dec 18, 2018

LAS VEGAS (Legal Newsline) – A skydiving company in Nevada alleges Groupon's anticompetitive activity caused it to lose revenue.

Las Vegas Skydiving Adventures LLC filed a complaint on Dec. 10 in the U.S. District Court for the District of Nevada against Groupon Inc. alleging monopolization, direct registered mark infringement and other counts.

According to the complaint, the plaintiff alleges that it has suffered economic harm because the defendant engaged in anticompetitive conduct that has depressed prices and driven out competition of tandem-tethered skydiving services in southern Nevada. The plaintiff alleges "virtually every provider" of tandem-tethered skydiving services has become a Groupon affiliate with it being the exception.

"Groupon is able to sell the relevant services at a deeply discounted price as compared to competitors due to Groupon’s share of the market, which has driven down pricing for the relevant services and driven out competitors," the suit states.

The plaintiff holds Groupon Inc. responsible because the defendant allegedly "gained the power to control price and exclude competition" and engaged in acts that artificially depressed prices for the services in the market to drive competitors out of business or force them to allow Groupon to act as a seller.

The plaintiff requests a trial by jury and seeks judgment against the defendant for actual damages, injunctive and equitable relief, attorney's fees, interest and other relief the court deems appropriate. It is represented by Steven A. Gibson and Jodi Donetta of Gibson Lowry LLP in Las Vegas.

U.S. District Court for the District of Nevada case number 2:18-cv-02342

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