Ticketmaster stands to save up to $350 million settling an 11-year-old lawsuit claiming it tacked on misleading fees to tickets — because few of the allegedly cheated customers have filed claims.
The ticketing agency has reached a tentative settlement in the 2003 class-action lawsuit — a deal that would offer up to $403.3 million in credits to 50 million ticket buyers, according to a report on Tuesday.
But as of the Dec. 31, so few customers have filed a claim that the company, bought by Live Nation in 2010, expects to pay out just $35.4 million, it said in a regulatory filing.
The settlement would affect those who bought tickets through Ticketmaster between October 1999 and February 2013 — but only if they file a claim.
Ticket buyers filed suit claiming Ticketmaster tacked on misleading “ordering” and “delivery” fees.
Neither Ticketmaster nor Live Nation has admitted wrongdoing in the case.
Amy Yong, who covers Live Nation for Macquarie Securities, called the $400 million potential settlement, initially reported in the Wall Street Journal, “the worst-case scenario” and agrees the payout will likely be less.
“Based on historical case studies,” she said, “only a small percentage of claims is expected to be filed” — an event that could sustain what the analyst went on to call Ticketmaster’s “long-tailed opportunity.”
Live Nation, though, won’t know the precise amount of Ticketmaster’s liability until a final approval hearing takes place in California state court next Jan. 13.
Live Nation reported a net loss of $80 million for all of its operations in 2013. In the first quarter, it narrowed its operating loss to $12.3 million from $33.2 million a year earlier as revenue increased 22 percent to $1.1 billion.
Its shares are up 19.3 percent this year to Tuesday’s close at $23.57.