US Judge rejects Ticketmaster settlement on delivery fees

August 2011

Live events industry

A Californian judge last week rejected an out of court settlement regarding a class action lawsuit against Live Nation’s Ticketmaster originally brought in 2003 two Americans, Curt Schlesinger and Peter Lo Re, who sued Ticketmaster claiming the ticketing giant had misled customers by implying in its marketing materials that “delivery fees” added to ticket purchases were simply a cost of sale, whilst in reality they were a profit margin. The case, which became a class action last year, was due to go to court in January, but an out of court settlement was reached, in which anyone who believed (and could prove) they had been misled could claim a small refund or discount on future purchases. Live Nation set aside $22.3 million to cover any claims.  LA Superior Court Judge Kenneth R Freeman has now turned down the settlement, saying it wasn’t sufficient and that the proposed deal “offered virtually no benefit to the class member” (ie anyone who made a claim). The whole thing is now likely to go to court in October. In related news, Live Nation is still suing its insurers Illinois Union Insurance Co in relation to this case after the insurers refused to pay the $4 million in legal fees that the live music and ticketing giant has run up in relation to it.
CMU Daily 11th July 2011 and

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