A sign marks a Motel 6 property in Espanola, New Mexico, U.S., July 11, 2018. REUTERS/Brian Snyder
June 29, 2019
(Reuters) – Motel 6 has agreed to pay $10 million to settle a class-action lawsuit over claims the hotel chain routinely provided guest lists from properties in Arizona to U.S. Immigration and Customs Enforcement (ICE) agents, court documents showed on Saturday.
Under the terms of the proposed settlement, filed in U.S. District Court in Arizona, Motel 6 would also abide by a three-year consent degree to not share guest information with federal immigration authorities absent a warrant or subpoena.
Representatives for Motel 6 could not immediately be reached for comment by Reuters on Saturday
A previous settlement reached by the two sides was rejected in November 2018 by a federal judge who said it did not go far enough in making sure that the plaintiffs, many of whom may be in the country illegally, would be found and compensated.
In April of this year the motel chain agreed to pay $12 million to settle a similar lawsuit filed by Washington state’s attorney general.
Motel 6 is controlled by the private equity firm Blackstone Group LP, which bought the brand in 2012.
(Reporting by Dan Whitcomb; editing by Jonathan Oatis)
