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Legal
Live Nation settles Ticketmaster delivery fees class action
By CMU Editorial | Published on Thursday 27 January 2011
Live Nation has confirmed that it has settled a long running class action lawsuit against its ticketing company Ticketmaster, and that as a result a one off pay out of $22.3 million will appear in it’s fourth quarter financial results. The case was launched way back in 2003 by two Americans called Curt Schlesinger and Peter Lo Re but was only confirmed as a class action, so that anyone negatively affected could claim damages, last September.
The plaintiffs accused Ticketmaster of misleading customers by implying in its marketing materials that “delivery fees” added to ticket purchases were a simply cost of sale, ie what it cost Ticketmaster to deliver tickets. In fact a profit margin was included so the fee was a revenue stream for the ticketing giant. Given the size of the delivery fees (up to $25) that was probably a given, but the plaintiffs reckoned the ticketing firm was at fault for not explicitly stating so.
Having become a class action lawsuit last year the case was due to go to court this month, but it seems an out of court settlement has been reached. Under the settlement, Live Nation/Ticketmaster will not accept it deliberately misled customers, but will (somehow) make efforts to compensate past ticket-buyers who were confused by their explanations of fees and ensure future communication is clearer. It will also cover all the legal fees related to this dispute. Hence the $22.3 million set aside to clear things up.
As an aside, Live Nation is already suing its insurers Illinois Union Insurance Co in relation to this case after it refused to pay the $4 million in legal fees the live music and ticketing giant has run up fighting the case.
