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Station Casinos Settles Surcharge Action for $5.17 Million |
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The parties have reached a tentative $5.17 million settlement in an action filed against Station Casinos, Inc., and its subsidiaries, on behalf of all persons who stayed at the Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Green Valley Ranch Station Casino, Fiesta Rancho Casino Hotel, Fiesta Henderson Casino Hotel, or the Wild Wild West Gambling Hall & Hotel between April 1, 2001, and June 7, 2004. The action alleged that the company failed to disclose the collection of a $1 charge for telephone usage and an "energy surcharge" of up to $3.50 per night, in violation of state consumer protection statutes. Coupons issued in the settlement must be used within 18 months of the approval of the settlement.
Station Casinos was one of many Las Vegas hotels that charged guests extra for energy use in 2001 because of soaring energy costs that plagued several western states at the time. By the end of 2001, Station had kept the surcharge while some hotels dropped the charge due to falling energy costs. Those hotels that dropped the charges wanted to induce more travelers to Las Vegas after the September 11 attacks.
The settlement will make up to $5.17 million available in the form of coupons. So far, coupons have been distributed to about 940,000 guests who paid to stay at the hotels during the applicable period. The coupons must be used toward the purchase of a one-night stay at a Station property, and cannot be redeemed for cash.
The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for October 22, 2004.
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