Airbnb heads through 2025 and into 2026 defending itself in courts across the country: a U.S. Department of Justice fair-housing case in California, wrongful-death suits tied to carbon monoxide deaths and a fatal Wisconsin cabin fire, a Los Angeles price-gouging action over the January 2025 wildfires, and a string of short-term rental fights in Biloxi, Clark County, New Orleans, and New York City. The company also closed out a two-year, $120 million tax dispute with San Francisco in March 2026 by settling for nothing. The latest Airbnb lawsuit news, case by case, is below.
DOJ Fair Housing Case Over the “Not Suitable for Children” Label
The most consequential case against Airbnb is a federal Fair Housing Act action filed by the United States on January 10, 2025, in the Northern District of California. It began with a host and property manager refusing to rent an apartment to complainants who had children.1U.S. Department of Justice. United States v. Airbnb (N.D. Cal.)
Two co-defendants, the host entity Sandlot05 LLC and an individual named Jarrod Blake, settled in June 2025. They agreed to adopt nondiscrimination policies, undergo Fair Housing Act training, submit compliance reports, and pay $15,000 in compensatory damages.1U.S. Department of Justice. United States v. Airbnb (N.D. Cal.)
Airbnb stayed in. The company moved to dismiss on venue grounds; the court denied that motion in September 2025. On March 13, 2026, the DOJ filed an amended complaint expanding the theory of the case. The government now argues that Airbnb’s practice of letting hosts flag properties as “not suitable for children or infants” is itself a pattern or practice of familial-status discrimination under the Fair Housing Act. The case docket was last updated on April 1, 2026, with no hearing dates published.1U.S. Department of Justice. United States v. Airbnb (N.D. Cal.)
Los Angeles Price-Gouging Suit After the 2025 Wildfires
Los Angeles City Attorney Hydee Feldstein Soto sued Airbnb on July 18, 2025, alleging the platform allowed illegal price increases on rentals after the January 2025 Pacific Palisades and Eaton fires.2NBC Los Angeles. Airbnb May Have Increased Prices of at Least 2,000 Rentals After LA Wildfire, City Attorney Says
The complaint alleges violations of California’s anti-gouging statute (Penal Code Section 396), the state Unfair Competition Law, and Governor Gavin Newsom’s January 16 state-of-emergency declaration, which bars rental price increases greater than 10% during the emergency period. The city attorney’s office estimates that prices went up on at least 2,000 properties and seeks a permanent injunction, consumer refunds, and civil penalties of up to $2,500 per violation, potentially $7.5 million in total.3Los Angeles Times. Airbnb Allowed Price Gouging Following L.A. Fires, City Attorney Alleges in Lawsuit
The suit also accuses Airbnb of misrepresenting the verification status of hosts and property locations, saying some “verified” listings were false or nonexistent.2NBC Los Angeles. Airbnb May Have Increased Prices of at Least 2,000 Rentals After LA Wildfire, City Attorney Says Airbnb has disputed the allegations, pointing to a $30 million contribution to fire-recovery efforts, free emergency housing for nearly 24,000 people, and its own price cap on rental increases after the fires.3Los Angeles Times. Airbnb Allowed Price Gouging Following L.A. Fires, City Attorney Alleges in Lawsuit
Wrongful-Death Cases: Carbon Monoxide and a Cabin Fire
Carbon Monoxide Poisoning at Foreign Rentals
Airbnb faces wrongful-death claims connected to carbon monoxide incidents at rentals overseas. A leading case involves Sebastian Mejia, a 24-year-old American who died on October 5, 2022, in Rio de Janeiro, Brazil, after a damaged or improperly installed fuel-burning water heater filled his rental with carbon monoxide. His family’s attorneys say at least 19 people have died of CO poisoning at Airbnb properties around the world, in countries including Mexico, Chile, Colombia, Taiwan, and Brazil.4The Ferraro Law Firm. Airbnb Carbon Monoxide Wrongful Death Case Press Release
Airbnb tried to push the Mejia case into arbitration under its user agreement. A San Francisco Superior Court judge denied that motion, and California’s First Appellate District Court affirmed that the wrongful-death claims and a claim for public injunctive relief can proceed in court, though it ordered a separate “survivor benefits” portion of the case into arbitration.5Reuters. Lawsuits Test Airbnb’s Alleged Liability for Carbon Monoxide Deaths No trial date has been set, and Airbnb is expected to seek summary judgment before any trial.6BusinessWire. The Ferraro Law Firm to Take Airbnb to Trial in Landmark Wrongful Death Case Involving Carbon Monoxide Poisoning
A separate suit filed in December 2024 concerns the death of Luis Penaloza Herrera from CO poisoning at an Airbnb in San Luis Potosí, Mexico, on December 27, 2022. Airbnb argued in a demurrer that it owed guests no duty to mitigate known CO risks. The San Francisco Superior Court overruled that argument in May 2025, finding that “the facts as pled in the Complaint do support finding a legally cognizable duty under California law.”7Haggard Law Firm. Airbnb Faces Legal Setback in Wrongful Death Lawsuit Over Carbon Monoxide Poisoning
The Necedah, Wisconsin Cabin Fire
A fire at a vacation rental cabin in Necedah, Wisconsin, on June 30, 2024, killed six members of an extended family of 20 gathered for a reunion. Survivor Stephen Kuehl, who lost his wife, his five-year-old daughter, his father-in-law, his sister-in-law, and two nieces ages 2 and 8, filed a wrongful-death suit in Juneau County Circuit Court in June 2025. It was later removed to the U.S. District Court for the Western District of Wisconsin.8Wisconsin Public Radio. Minnesota Man Sues Airbnb After 6 Family Members Died in Juneau County Cabin Fire
The complaint names Airbnb along with the property owners, Yevhen Hurtovyi and Iuliia Lytvynenko. It alleges the cabin was not properly licensed or inspected and lacked functioning smoke and carbon monoxide detectors, and that Airbnb only “encourages” rather than requires hosts to install smoke detectors.8Wisconsin Public Radio. Minnesota Man Sues Airbnb After 6 Family Members Died in Juneau County Cabin Fire
Airbnb has moved to stay the case and compel arbitration based on the terms of service the booking guest and the plaintiffs accepted when creating accounts. The plaintiffs oppose arbitration, arguing that the victims who died were not parties to any Airbnb contract and that the delegation clause is unconscionable. As of mid-June 2026 the court had not ruled on the arbitration question, and filings remained active. The Juneau County Sheriff’s Office announced in 2025 that no criminal charges would be filed against the cabin owners.9Fox 11 Online. Family of 6 Killed in Necedah Vacation Home Fire Oppose Airbnb’s Call for Pause in Lawsuit
Short-Term Rental Regulation Fights
Biloxi, Mississippi
On November 12, 2025, Airbnb and a Biloxi resident filed a federal antitrust lawsuit against the city in the U.S. District Court for the Southern District of Mississippi. The complaint alleges Biloxi conspired with the Mississippi Hotel and Lodging Association to restrict short-term rentals in order to protect the hotel industry, violating federal antitrust law (15 U.S.C. § 1) and Mississippi antitrust statutes.10Case Filings Alert. Airbnb Sues Biloxi Complaint
Two ordinances are challenged: a 2016 measure banning short-term rentals in single-family residential zones and routing every permit application to the lodging association, and a 2023 ordinance capping conditional-use permits at 75 citywide. Airbnb says Councilman Kenny Glavan, a hotel executive and president of the lodging association, cast deciding votes on both measures without recusing himself. The suit seeks damages, a declaration that the ordinances are unlawful restraints on trade, and a permanent injunction. Biloxi has characterized the case as an attempt to avoid all regulation of short-term rentals in residential neighborhoods.11WXXV25. Airbnb Files Lawsuit Against City of Biloxi Concerning Short-Term Rentals
Clark County, Nevada
Airbnb and the Greater Las Vegas Short-Term Rental Association sued Clark County over its licensing regime, arguing the rules amounted to a ban in disguise because a very short application window and slow processing left applicants exposed to fines and liens while their permits were pending.12News 3 Las Vegas. Short-Term Rental Group Court Ruling Injunction Block Clark County Regulations
On December 17, 2025, U.S. District Judge Miranda Du granted a preliminary injunction, finding the county’s system likely violates Fourteenth Amendment due-process protections. Judge Du said the plaintiffs were “likely to win” and blocked the county from requiring STR licenses, issuing daily fines, declaring short-term rentals a public nuisance, or recording liens against properties. On January 6, 2026, the Clark County Board of Commissioners voted unanimously to appeal to the Ninth Circuit, and the district attorney’s office called the ruling “in error.” The injunction remains in effect during the appeal.13The Nevada Independent. Airbnb Likely to Win Legal Battle Against Clark County, According to Judge14Rent Responsibly. Clark County Nevada to Appeal Federal Ruling Blocking Short-Term Rental Ordinance
New Orleans: Dismissed
In February 2025 Airbnb and local property owners sued New Orleans over its short-term rental permitting framework, challenging density limits, on-site resident requirements, a 2024 ordinance requiring platforms to remove unpermitted listings, and data-reporting mandates the plaintiffs called an invasion of user privacy. They argued the rules amounted to an unconstitutional taking and that forcing platforms to enforce city law was regulatory overreach.15WWNO. Explaining New Orleans’ Short-Term Rental Saga
On September 8, 2025, federal Judge Zainey dismissed the case with prejudice, ruling there is “no fundamental right to rent out residential property on a short-term basis.” The court also held that requiring platforms to verify listing permits before booking transactions regulates the platform’s conduct as a booking agent rather than violating the Communications Decency Act.16New Orleans City Council. New Orleans City Council Hails Landmark Win on Short-Term Rentals
New York City Enforcement Under Local Law 18
New York City’s Local Law 18 short-term rental registration regime has been in effect since September 2023. Hosts must register with the Mayor’s Office of Special Enforcement, and platforms including Airbnb are barred from processing transactions for unregistered rentals. As of September 2025 there were roughly 3,000 active registrations, more than 21,000 buildings on the city’s prohibited list, and over 4,300 applications had been denied.17NYC Mayor’s Office of Criminal Justice. LL18 Report Sheds Light on Eliminated Illegal Rentals in NYC
The city has begun using LL18’s penalty provisions in court. It filed its first suit in May 2025 to reclaim 10 apartments in the West Village, and in April 2026 it sued a landlord for converting entire buildings into illegal short-term rentals. A City Council bill that would have loosened some rules, including raising the guest cap from two to four adults and allowing hosts to lock bedroom doors, failed to advance before the 2025 session ended.18Skift. No Vote on NYC Bill to Ease Short-Term Rental Rules
San Francisco $120 Million Tax Fight Settled for Zero
Airbnb’s tax dispute with San Francisco ended in March 2026 with a zero-dollar settlement reached shortly before trial. The company had sued the city in February 2024 seeking about $120 million in business taxes assessed on its gross income from 2019 through 2022, arguing that San Francisco misclassified it as a “travel arrangement and reservation services” firm instead of a lower-taxed “online platform.”19San Francisco Chronicle. SF Reaches Deal With Airbnb in $120M Tax Fight
Under the deal, Airbnb dropped its $120 million claim and receives nothing. Both sides also released any claims regarding excessive or insufficient tax payments for the 2023 and 2024 tax years. The agreement was pending approval by the Board of Supervisors as of March 2026.20Mission Local. Airbnb SF Lawsuit Settlement The $120 million had been held in the city’s litigation reserve, and the mayor’s office said the freed-up funds would be spent down over three years to cushion a projected two-year budget deficit of nearly $900 million.19San Francisco Chronicle. SF Reaches Deal With Airbnb in $120M Tax Fight
Shareholder, Class Action, and Privacy Cases
On June 2, 2025, the Heritage Foundation and the American Conservative Values ETF sued Airbnb and certain directors in the U.S. District Court for the District of Delaware, alleging the company improperly excluded two shareholder proposals from its April 2025 proxy statement. Airbnb said it had no record of receiving the proposals before the proxy was filed and offered to include them in the 2026 shareholder meeting materials.21Airbnb Investor Relations. Airbnb Provides Copies of Stockholder Complaint and Alleged Stockholder Proposals On February 12, 2026, Delaware federal Judge Gregory B. Williams trimmed the suit, dismissing claims against individual executives and claims tied to the not-yet-released 2026 proxy materials, but portions survived.22Law360. Airbnb Escapes Most of Conservative Investors’ Suit
A proposed class action in Nevada, Giller v. Airbnb, Inc., filed in July 2024, alleges Airbnb knowingly profits from hosts who are not property owners and are barred by leases or local law from running short-term rentals. The complaint asserts violations of the Nevada Deceptive Trade Practices Act and unjust enrichment from fees on those unauthorized transactions.23ClassAction.org. Airbnb Lawsuit Claims Site Enables Profits From Unauthorized Hosts Who Post Illegal Short-Term Rental Listings
Privacy suits over hidden cameras have also produced settlements. In one case, Texas “superhost” A. Jay Allee pleaded guilty to six counts of invasive visual recording after police recovered more than 2,000 images of over 30 victims, including minors. Thirteen victims sued Airbnb in California state court in July 2022, and the company settled six months later.24WRAL. No Room for Privacy: How Airbnb Fails to Protect Guests From Hidden Cameras