A Los Angeles judge tentatively refused to dismiss the city’s lawsuit accusing Airbnb Inc. of price gouging during the height of the 2025 wildfires, allowing the case to continue for now.
Judge Robert Broadbelt III on Monday issued an unsigned tentative order rejecting Airbnb’s bid for dismissal, according to a copy obtained by the City Attorney’s office. He has not yet made a final ruling.
Lawyers for the city and Airbnb appeared before Broadbelt in Los Angeles County Superior Court earlier in the day. At the hearing, the judge did not signal how he was leaning, saying only that he would take the matter under submission and issue a final ruling later.
Wildfire pricing claims
Los Angeles sued on behalf of the People of California in July 2025, alleging Airbnb unlawfully raised rental prices after the Palisades and Eaton fires that tore through Southern California earlier that year.
The city alleges Airbnb violated unfair competition rules as well as Los Angeles and state price-gouging laws that take effect during a state of emergency. Those laws bar price increases of more than 10% in an emergency, and the city said at least 2,000 LA properties were affected in the immediate aftermath of the fires.
A central focus of the suit is Airbnb’s "Smart Pricing" feature, which the company says adjusts the nightly price of a listing "based on demand."
The complaint says Airbnb turned off that feature only days after the fires began, after a request from California Attorney General Rob Bonta (D). According to the lawsuit, that showed "Smart Pricing" caused unlawfully high prices.
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Dispute over who sets prices
Airbnb has argued that responsibility for pricing rests with individual hosts, not the company.
"Hosts are solely responsible for setting prices, and do so independently", the company’s motion to toss the suit said.
Jon Dean of Sidley Austin LLP, arguing for Airbnb, said the company does not set or advertise prices. He said "Smart Pricing" is optional and lets hosts set a price range while the tool adjusts within that range based on demand.
Under Los Angeles’ theory of liability, Airbnb would have to review every host’s chosen price, Dean said.
Tiffany Tejeda-Rodriguez, representing the city responded that the feature allows Airbnb to set the price without the host monitoring.
Listing verification also challenged
The city also claims Airbnb failed to adequately verify some information on its platform, pointing to cases in which a host’s identity appeared inaccurate or a listing was located miles from where it was advertised.
Airbnb responded that a verification label does not promise a specific location. It means the host has shown that the listing "is a real home, at an accurate location", and that the host has access to that spot.
The company also said a verified ID means a host has a "valid legal identity", while legal names are not required for privacy reasons.
During the hearing, Dean expanded on that point, saying "I would submit my 93-year-old father would understand that a face name on a platform is not necessarily going to match what is on someone’s government ID."
The city is seeking an order barring Airbnb from price gouging and engaging in competition, along with potential monetary relief for alleged violations of city and state law and attorneys fees.
The Office of the Los Angeles City Attorney represents LA. Sidley Austin LLP represents Airbnb. The case is People v. Airbnb, Cal. Super. Ct., No. 25STCV21244, hearing on demurrer 6/22/26.