CENTRAL SANTA LUCIA, L.C., PLAINTIFF, V. EXPEDIA GROUP, INC., DEFENDANT. (1:22-CV-00367; Delaware District)

Cross & Simon, LLC (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields LLC (plaintiff)
Ballard Spahr LLP (defendant)

Complaint (3/22/22)
Link To Libertad Act Lawsuit Filing Statistics

Excerpts From Complaint

Central Santa Lucia brings this action to recover damages and interest under the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996, codified at 22 U.S.C. § 6021, et seq. (the “Helms-Burton Act” or “Act”) against Expedia for trafficking in property that was confiscated by the Cuban Government on or after January 1, 1959, and as to which Central Santa Lucia owns claims.

The Confiscated Property includes real property located in or near Holguin province, Cuba that, until it was confiscated by the Cuban government in 1960, was owned by Santa Lucia Company, S.A., a Cuban corporation. The Confiscated Property consists of Santa Lucia Company, S.A. and approximately 102,300 acres of land, including thirty-five miles of oceanfront property that in some parts extended 8 miles inland. The following beaches (as they are currently known) are located on the Confiscated Property: Playa Blanca; Playa Pesquero; Playa Yuraguanal; Playa Esmeralda; and Playa Guardalavaca.

A number of luxury hotels are currently located on the Confiscated Property including, but not limited to: Hotel Brisas Guardalavaca; Club Amigo Atlantico-Guardalavaca; Paradisus Rio de Oro; Sol Rio de Luna y Mares; Hotel Turquesa Holguin; Fiesta Americana Costa Verde; Hotel Playa Costa Verde; Playa Pesquero Resort Suite and Spa Hotel; Iberostar Selection Holquin; Villa Don Lino; Memories Holquin; and the Iberostar Selection Almirante.

Under the agency model, Expedia Group facilitates travel bookings and acts as the agent in the transaction, passing reservations booked by the traveler to the relevant travel provider with Expedia Group receiving commissions or ticketing fees from the travel supplier and/or the traveler. Customers pay at the time of stay under this model, referred to as “Hotel Collect.” The agency model accounted for 24% of Expedia Group’s revenue in 2020.

On May 23, 2017, Expedia Group announced that it had started offering online booking for hotels in Cuba. Veronica Vega, Expedia Area Manager for the Caribbean, stated that, “I see a lot of potential. We are talking about the largest country in the Caribbean with significant hotel expansion plans,” and that, “We are very excited about being able to facilitate travel and give people the independence to select their itinerary.” 1 57. Expedia Group entered into a settlement agreement with the Office of Foreign Assets Controls (“OFAC”) on May 17, 2019, regarding 2,221 potentially non-compliant Cubarelated travel transactions that occurred between 2011-2014.

Expedia Group websites still facilitate online booking for hotels in Cuba and Expedia Group has never announced a withdrawal from the Cuban market. 62. Expedia Group websites advertise hotels on the Confiscated Property and enable the hotels, Grupo de Administración Empresarial S.A. (“GAESA”), and the Cuban government to normalize the appearance of the Cuban military’s involvement in the tourism and hotel industry in Cuba.2 63. Expedia Group websites facilitate the payment of hard currency to the Cuban government and military, including GAESA.

Expedia Group is profiting from trafficking in the Confiscated Property by or through its retail brands that advertise, publicize, and/or facilitate the booking of rooms at hotel properties in Holguin province. 74. Expedia Group does not list hotels on the Expedia Group websites for charitable purposes.

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