Stay Granted in Case Brought by FTC, 6 States Over Roomster’s Fake Positive Reviews

U.S. District Judge Colleen McMahon for Southern New York in Manhattan granted a 60-day stay in the case brought by the FTC and six states to thwart Roomster's alleged proliferation of fake positive online reviews (see 2302030034), said her signed memo endorsement Wednesday (docket 1:22-cv-07389). The parties said they needed the stay to conserve resources while the plaintiffs seek the necessary approvals from the FTC and the states’ attorneys general of a proposed settlement that would resolve all pending claims. The settlement will include injunctive relief and a monetary judgment that will go toward restitution payments to consumers, they said. The stay includes a “limited” discovery exception that will enable the states to seek restitution data from third parties, they said.