Nearly 400 Taylor Swift fans and other concertgoers have filed a complaint against Ticketmaster in California state court for price gouging.
Taylor Swift supporters are suing Ticketmaster and its parent firm Live Nation, alleging collusion with partner groups to purposely raise ticket costs. The complaint, filed in California state court by almost 400 concertgoers, builds on a previous federal court case accusing Ticketmaster and Live Nation of racketeering activities.
This time, however, the Swiftie plaintiffs are leveling RICO accusations against Ticketmaster.
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According to Wired, plaintiffs claim that Ticketmaster and Live Nation violated the Racketeer Influenced and Corrupt Organizations (RICO) Act, legislation famously used by the Department of Justice in the 1980s to bring down high-ranking members of various New York mafia families.
Swift followers claim that Ticketmaster and its parent firm collaborated with stadium venues and other partners in an illegal activity. It’s a bit of a stretch, but it might stick.
Swift supporters originally filed a federal lawsuit against Ticketmaster in December 2022, following bungled ticket sales for Taylor Swift’s Eras tour.
Due to issues with the ticketing website, fans were forced to wait for hours to get tickets that should have been offered to them as part of an early access program; many were eventually disappointed. Even as people waited, tickets began to appear at inflated prices on Ticketmaster’s own resale marketplace, a claim that Live Nation contests.
That disaster prompted a hearing in the US Senate on ticketing industry consolidation, with the US Department of Justice bringing an antitrust case in May in the aim of separating Ticketmaster and Live Nation.
Meanwhile, Live Nation calls the DOJ’s lawsuit “a PR win” in the short term, but claims it will “lose in court because it ignores the basic economics of live entertainment, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster’s market share and profit margin.”
Live Nation described the latest action as “baseless.” “This action is founded on incorrect assumptions about how ticketing operates. “Ticket prices are set by artist teams, not Ticketmaster.” Additionally, Live Nation contends that it “does not own stadiums in the US and primary tickets are consistently priced below market value, as evidenced by resale prices averaging more than double.”
The two lawsuits are essentially identical, except the newer one includes fans of artists other than Taylor Swift and alleges a RICO violation. That accusation is completely based on the idea that Ticketmaster and Live Nation collaborated with partner companies to assert market dominance in a fashion that fulfills the RICO Act’s enterprise description.
“Live Nation and Ticketmaster exploit the relationship between themselves and with stadium venues largely owned by Live Nation to achieve the purpose of their enterprise, and have been doing so ever since the Department of Justice ill-advisedly approved their merger nearly a decade and a half ago,” according to the paperwork.
According to the plaintiffs’ counsel, pursuing the RICO action allows supporters to “[attack] from different fronts,” potentially leading to a favorable verdict. It is unclear whether any of those charges will be brought to trial; the federal lawsuit is presently on hold pending the outcome of an appeal in a related antitrust case.
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