Lawsuit Accuses Airbnb of Wrongfully Confiscating Hosts' Funds for Covid-19 Cancellations

Airbnbs Actions Violate Contractual Agreement with Hosts, According to Lawsuit

A Michigan law firm has filed a class action lawsuit on behalf of Airbnb hosts throughout the country alleging that Airbnb improperly seized funds for COVID-19 cancellations and has often held onto that money rather than distributing it as full refunds to guests despite its promises to do so. Traverse Legal, PLC (offices in Detroit and Traverse City) and Gibbs Law Group (offices in California) are representing the hosts and are actively reviewing potential claims on behalf of additional hosts who have suffered losses through Airbnb’s actions.

The lawsuit alleges that to generate positive press for its upcoming IPO, Airbnb publicly promised that it would take care of guests during the pandemic by fully refunding their bookings and fees for reservations. However, according to the complaint, Airbnb is frequently not providing those full refunds and is instead leaving both hosts and guests to suffer substantial losses and hardships, while the company benefits from an influx of money for which it has no rightful claim.

“People who rent out vacation property are struggling to survive during this COVID-19 crisis, and Airbnb has no legal right to unilaterally step in and help itself to this money,” said Enrico Schaefer, one of the lead attorneys representing the hosts. “Other companies have stepped up to do the right thing and try to help people who have been negatively impacted by the pandemic, but here we have hosts and guests that are losing money, and somehow Airbnb is coming out ahead,” said Michael Schrag of Gibbs Law Group.

Airbnb hosts who believe they were wrongfully withheld funds by Airbnb for COVID-19 reservation cancellations and would like to learn more about their legal rights in the Airbnb Class Action Lawsuit may contact our team.

About Traverse Legal

Traverse Legal is a law firm with offices in Detroit and Traverse City, MI with substantial internet. Founding attorney Enrico Schaefer brings a deep understanding of the Airbnb ecosystem as a successful host himself. He is a trusted and passionate advocate for the host community, representing hundreds of hosts, property managers and property owners across the world. Traverse Legal is dedicated to fighting for accountability and transparency for hosts and guests in the sharing economy.

About Gibbs Law Group

Gibbs Law Group represents small businesses, consumers, whistleblowers, and employees across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes complex lawsuits and individual cases involving consumer protection, data breach, digital privacy, and employment law. Our attorneys have received numerous honors for their work, including: