Investors Seek Lead in Class Action Against Trip.com Over Alleged Monopolistic Practices

The collapse of Trip.com's AI-powered pricing model has triggered a shareholder lawsuit and regulatory scrutiny, exposing the fragility of the company's business practices.

Apr. 9, 2026 at 2:49am by Ben Kaplan

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A high-end, photorealistic studio still-life featuring a stack of travel booking documents, a laptop, and a smartphone with the Trip.com app open, arranged elegantly on a clean, white background to symbolize the abstract corporate strategy, finance, and regulatory risks facing the online travel industry.A shareholder lawsuit and regulatory probe into Trip.com's AI-powered pricing model expose the fragility of the online travel giant's business practices.San Francisco Today

A securities class action lawsuit has been filed against China's largest online travel agency, Trip.com Group (NASDAQ: TCOM), seeking to represent investors who purchased Trip.com securities between April 30, 2024 and January 13, 2026. The lawsuit alleges Trip.com misled investors about the true purpose of its AI pricing tool and the sustainability of its business model, leading to a 17% stock plunge when regulators in China announced an investigation into the company's alleged monopolistic practices.

Why it matters

The case highlights growing regulatory scrutiny of large tech platforms and their use of algorithms and data-driven tools, especially in China where antitrust enforcement has ramped up in recent years. The outcome could have significant implications for Trip.com's business model and the broader online travel industry.

The details

The lawsuit follows a 17% decline in the price of Trip.com American Depositary Shares on January 14, 2026, triggered by the company's announcement that it is the subject of an investigation by regulators in China pursuant to the Anti-Monopoly Law. The complaint alleges Trip.com materially understated the regulatory risk it faced for its monopolistic business conduct, including the use of an AI-powered price adjustment tool that allegedly forced participation in promotions, undercut competitors, and penalized non-compliant merchants.

  • The class period is from April 30, 2024 to January 13, 2026.
  • The lead plaintiff deadline is May 11, 2026.
  • On January 14, 2026, Trip.com's stock price dropped 17% after the company disclosed the regulatory investigation.
  • On February 26, 2026, Trip.com announced the abrupt resignation of its co-founders from the board.
  • On March 8, 2026, Trip.com announced it would shut down its automated hotel AI price adjustment tool on March 10.

The players

Trip.com Group

China's largest online travel agency and the subject of the securities class action lawsuit.

Hagens Berman

The national shareholders rights firm that has commenced an investigation into whether Trip.com violated federal securities laws.

Reed Kathrein

The Hagens Berman partner leading the firm's investigation into Trip.com.

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What they’re saying

“We're investigating whether Trip.com may have misled investors about the true purpose of its AI pricing tool and the sustainability of its business model without it.”

— Reed Kathrein, Partner, Hagens Berman

What’s next

The judge will decide on May 11, 2026 whether to allow the class action lawsuit against Trip.com to proceed.

The takeaway

This case highlights the growing regulatory scrutiny of large tech platforms and their use of algorithms and data-driven tools, especially in China where antitrust enforcement has ramped up in recent years. The outcome could have significant implications for Trip.com's business model and the broader online travel industry.