Jury Rejects the Claim
After years of litigation, a Delaware jury ruled in August 2025 that CSL failed to show valid ownership. Judge Jennifer L. Hall entered judgment for Expedia, paving the way for post-trial sanctions.
Expedia accused Nick Gutierrez, the attorney who created CSL, of orchestrating the backdating scheme. The company said CSL’s lawyers doubled down despite metadata showing the documents were created in 2000.
Expedia’s Sanctions Demand
Expedia is asking the court to impose Rule 11 and Rule 37 sanctions, alongside penalties for vexatious litigation. Specifically, it seeks:
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$2.5 million in attorney fees
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$250,000 in expenses
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$22,500 in expert costs
Expedia argued that the plaintiffs’ persistence in pressing “a patently frivolous allegation” magnified their bad faith.
A Long Sanctions Battle
This marks Expedia’s third sanctions motion since the lawsuit began. Earlier attempts were denied or withdrawn as premature. But with the jury verdict in hand, the company insists the time for penalties has come.
Expedia alleges CSL’s counsel not only allowed false testimony but also obstructed discovery and misused privilege to hide damaging evidence.
