FTC, 5 States Worry Roomster ‘Spoliated Evidence,’ Says Status Update

The FTC and five plaintiff states are engaged in settlement talks with defendant Roomster, but “no resolution has been reached,” said a joint status update Tuesday (docket 1:22-cv-07389) in U.S. District Court for Southern New York. The FTC and attorneys general of California, Colorado, Florida, Massachusetts and New York sued the room-finding app and co-founders John Shriber and Roman Zaks in August for false advertising, deceptive trade practices, including fake reviews, and fraudulent businesses, among other claims (see 2302030034). With settlement talks ongoing, the plaintiffs “have continued to pursue discovery,” but Roomster hasn’t served any document requests “in an effort to prioritize settlement negotiations,” said the status update. The plaintiffs worry Roomster “may have spoliated evidence,” it’s giving them “incomplete and inaccurate information,” and it’s delaying discovery, which Roomster denies, it said. The next status update will be May 16, it said.