LAS VEGAS (AP) — A federal judge has rejected claims that Las Vegas nude and topless clubs illegally pay kickbacks to taxi drivers who deliver customers to their doors.
U.S. District Judge Lloyd George in Las Vegas ruled that plaintiff Theodore Trapp and attorneys led by Jay Edelson of Chicago failed to prove the racketeering allegation in a 2009 lawsuit that sought class-action status.
The Las Vegas Sun reports the ruling was delivered last week.
The judge noted it isn’t illegal for an adult nightclub to charge an admission fee or to pay a cab driver, and failure to disclose to customers that a portion of their entry fee went to cabbies wasn’t sufficient grounds to sue.
The suit claimed that taxi companies extorted tens of millions of dollars in commissions from the clubs.
Copyright 2011 The Associated Press.