Airbnb was one of the fastest growing businesses ever. They had a lot going for them in the initial years and the kind of revenue they made speaks for itself. Their business model was apt and it benefitted all the parties involved. Airbnb Class Action Lawsuit alleges that the firm is carrying out a lot of activities that benefit itself at the expense of both hosts and the guests.
The entire thing revolves around the effects of the Pandemic which needless to say, caught everyone off guard. It is no secret that the travel industry got hit by the Covid 19. Many people had a difficult time and without financial stimulus, things would have been worse to say the least.
If you are someone that may be concerned with this lawsuit, then stick with us till the end. We will discuss the intricacies and procedures involved so that you can take action swiftly.
In case you have any doubts, feel free to contact the Gibbs Law Group(firm handling the case) and they will assist you for free.
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Bit of History
The Airbnb business model is something which was unimaginable a few years ago. With rising prices, this business created the perfect solution which brought a lot of value to both travellers and hosts. People could easily create cash flow by renting the space out and travellers got a bang for the buck they paid.
On the surface, it looks easy. However, know that a lot of things go behind the scenes when it comes to running a business. Things like handling invoices, refunds and structuring cancellation fees and policies are extremely daunting. Airbnb gave a lot of control to hosts because at the end of the day, it is their place, right?
When the Pandemic hit, this firm allegedly tried to override the rights of other parties and twisted things which would favour them financially. Now, as you are aware of the reasons for this litigation, let us take a look at the actual matter.
Airbnb Class Action Lawsuit Explained
Airbnb came out with a refund policy that allowed the guests to get a full refund on the money they had paid and there were no cancellation fees either. Anyone that booked a place using the app was supposed to get the payment and there was a $250 million compensation fund created by them.
In light of the debut of their IPO, they needed to adhere to strict ethical and moral standards or else it would reflect poorly on them. In the initial days of planning, everything looked good in theory. However, the execution was not apt.
Many guests were never able to get a full refund and the hosts also experienced a lot of financial damage due to the change in policies. Now, Gibbs Law Group and Traverse Legal have filed a class action lawsuit against the firm on behalf of the hosts.
Causes and Allegations
If we take a look at the chain of events, then the start of the Pandemic is the one to focus on. The United States just like every other country had to surrender for a lockdown in order to break the chain.
When the whole country was put on hold with restrictions, the people that already booked Airbnb properties were left with no choice than to apply for a refund or lose a bit of money to cancellation policies. Airbnb promised guests to refund the payment and they breached the contract with the hosts in many ways.
First and foremost, the hosts were financially burdened. The assured payments never reached everyone as promised. Many hosts and guests have alleged that the process to get the payments was made confusing and overwhelming on purpose.
To small time business owners that depended on this firm to create cash flow, the things they had to face were absolutely horrific. The unrest among the hosts went outside the limits which ultimately triggered the lawsuit.
Airbnb Refund Policy
Refund policies have to be handled with care. In a simple business model, outlining terms and conditions regarding this aspect is easy and straightforward. However, as Airbnb merely connects travellers with hosts, things are different.
This firm did give hosts the upper hand in setting the ground rules and was following things quite thoroughly. Sadly, during the worst period i.e., the Pandemic, they took matter into their own hands. Funds were seized from the hosts in the name of a refund policy.
Perhaps the worst part is that transparency was not present and naturally, many people were frustrated by it. By now, you might have figured out that the sole reason which led to the rise of litigation is the refund policy. While no one knew the future, the ways the hosts were handled is indeed pathetic and cruel.
Airbnb Class Action Lawsuit Benefits for Hosts
Due to the loss of control over the refund and cancellation policy many hosts are hurt financially. If you also suffered a loss due to Airbnb’s change of policies, then you might be eligible to get compensation from the Airbnb Class Action Lawsuit. All you have to do is visit the official site (www.classlawgroup.com) and get in touch with the lawyers.
Your queries will be answered for free and confidentiality will be present at every step. Their online platform employs an SSL layer which means all the data will be encrypted and you will have nothing to worry about. Currently, there are no estimates about the end dollar amount for compensation as there are tons of variables involved.
However, in the near future the small details will be covered by them. Bookmark the official website in case you want to get all the latest updates. After all, Gibbs Law Group will publish relevant information as and when it comes out. So, that’s the best source.
Attention from Press
Airbnb Class Action Lawsuit got a lot of attention from the press. CNBC did a thorough article on the matter and it talked with a spokesperson and few hosts as well. Other news outlets also have covered the incident and the consensus is kind of negative.
Obviously, apart from the firm, no one is happy about the way things were handled. The lawsuit has been filed, but the court is yet to give their input.
Most probably, there might be a settlement, but for now any theories involving this incident unless it is coming from an official source is likely to be a speculation. Only time can tell us the real direction as far as this case is considered.
Financial markets are in a weird place. The 2020 lows have disappeared and the current economic metrics look bullish. To capitalise on their success, Airbnb is planning to go public in the near future. While things do look uncertain for the travel sector, we cannot comment much on it because at the end of the day, a lot of things need to be considered.
Investors are already ready to throw their money at it. While the crowd sentiment might be good, things won’t get a good start until the company clears all the litigation.
After all, no one will take chances with a company that has too much heat, right? If you are planning to jump in on the trend, then talk to your financial planner before committing your capital.
Airbnb Class Action Lawsuit Conclusion
Airbnb Class Action Lawsuit is already filed. The spokesperson of this firm said that his lawsuit does not have any merit. While the defendants might deny all the allegations, until the court gets involved, no party is a clear winner here.
So, if you have suffered any damage, then do the needful on your side, sit back and relax. In case you have specific queries which are not answered by anyone, then hire an attorney.
What do you think about the whole situation involving Airbnb Class Action Lawsuit? Leave your comments below.