Item 7.01. Regulation FD Disclosure

On October 30, 2009, priceline.com Incorporated received a jury verdict in the City of San Antonio, Texas v. Hotels.com, L.P., et al lawsuit. The lawsuit is a class action in the United States District Court for the Western District of Texas, San Antonio Division, brought by the City of San Antonio on behalf of itself and a class of 172 Texas municipalities against priceline.com and other on-line travel companies.

The jury's verdict found that priceline.com and the other on-line travel companies that are defendants in the lawsuit control hotels under the local hotel occupancy tax ordinances and are, therefore, responsible for collecting and remitting local hotel occupancy taxes. The jury rejected the City of San Antonio's claim for conversion - essentially, that priceline.com and the other on-line travel companies had collected a tax and "pocketed" the tax dollars - and for punitive damages.

The final amount of the judgment against priceline.com has not been determined. The jury found that priceline.com and its wholly-owned subsidiary, Travelweb LLC, owed the City of San Antonio and the 172 Texas municipalities that make up the class approximately $2.0 million for historical damages through May of 2009. In further proceedings, the Court will determine, among other things, the amount of penalties and interest, which could be significant. We are unable at this time to estimate the final amount of the judgment.

Because we believe that the jury's decision is inconsistent with the ordinances and the evidence presented at trial that we do not control hotels, we intend to vigorously pursue our rights on appeal to the United States Court of Appeals for the Fifth Circuit.

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