Ticketmaster takes $22 million hit for charges

March 2011

Live events industry

Ticketing and concert promotions giant Live Nation Entertainment has announced that it is taking a one-time, $22.3 million charge for expense against earnings to settle a class action lawsuit over the delivery and processing fees its Ticketmaster division charges. Specific details of the settlement were not disclosed, but in documents filed with the Securities and Exchange Commission (SEC) the company said it was not admitting any wrongdoing in relation to the lawsuit, which originally had been filed in 2003 by ticket buyers Curt Schlesinger and Peter Lo Re. The two fans had argued that Ticketmaster’s fees of between $14.50 and $25 were misleading because they were profit generators for the company and not simply passed on fees related to delivery. In a SEC filing Live Nation said “Ticketmaster and its parent, Live Nation Entertainment, Inc., have not acknowledged any violations of law or liability in connection with the matter, but have agreed to the settlement in order to eliminate the uncertainties and expense of further protracted litigation” … “Pursuant to the terms of the settlement, among other things, Ticketmaster will pay the fees of the claims administrator as well as the plaintiffs’ attorneys’ fees and certain costs that are approved by the Court and subject to a set maximum, and class members who meet certain conditions will be entitled to receive from Ticketmaster a cash payment and/or discounts off one or more future ticket purchases.”

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