Vail Resorts is facing a shareholder lawsuit accusing the company and its executives of participating in an illegal price-fixing scheme that has driven up the cost of its popular Epic Pass and other services. The complaint, filed by shareholder Gary Peterson in Colorado federal court, alleges that Vail Resorts shared pricing and financial information with competitors Alterra Mountain Company, Boyne Resorts, and Powdr Corp. beginning in 2020.
According to the 55-page lawsuit, this alleged coordinated effort led to increased prices across season passes, lift tickets, rentals, and lessons. Since 2021, the cost of the Epic Pass has reportedly increased by 39%, rising from $783 to $1,119 for the current season. The lawsuit contends that Vail Resorts intentionally drove single-day lift ticket prices to "economically irrational" levels, with peak holiday tickets reaching as high as $385, in order to compel skiers to purchase the more expensive multi-mountain pass.
The Epic Pass provides access to Vail's 42 ski destinations and accounts for approximately 65% of the company's lift revenue. The lawsuit argues that the pricing of the Epic Pass and lift tickets is central to Vail's business operations.
This legal action is the third class-action lawsuit to target Vail's pricing practices, following two earlier antitrust suits brought by customers. However, this current lawsuit also alleges that company executives breached their fiduciary duties and violated securities laws by allegedly misleading shareholders about the company's rising profits. Peterson asserts that shareholders were harmed by being kept uninformed about pricing strategies for Vail's primary revenue generator, potentially enriching executives at the expense of investors.
A spokesperson for Vail Resorts stated that the company believes the claims are without merit and that it will vigorously defend itself and its board of directors. The lawsuit is seeking a jury trial.