A two year period of litigation between two Las Vegas ticketers has reached resolution, with both companies vowing to work collaboratively in the Las Vegas ticket market going forward.
Tix Corporation, a discount ticketer with a patented ticket distribution system, and Vegas.com, a travel Web site which operates a number of discount ticket kiosks under VegasTix4Less, LLC, have come to an agreement which ends the legal bickering between the two dating back to December 2009.
At that time, VegasTix4Less brought a lawsuit for anti-trust violations against Tix4Tonight, LLC, which operates Tix Corp.’s network of ticket kiosks. The suit accused Tix4Tonight of securing exclusive distribution rights from venues and producers in Vegas, allegedly making threats against those who dealt with VegasTix4Less and, in at least one instance, allegedly attempting to bribe a client into barring the ticketer from selling at his place of business.
Soon after, Tix4Tonight countersued, citing trademark infringements.
With this new agreement, the legal battles are over and the two companies launched a new business relationship. As part of the deal, Tix Corp. acquires the assets of VegasTix4Less at a cost of $4 million, $2 million to be paid up front and the other $2 million coming over the next eight years. In addition, Vegas.com has licensed Tix Corp.’s patent for its ticket distribution system, which routes online and offline storefronts to a central distribution processor.
In addition, the two companies have agreed to work together in the future to seek other business opportunities in the Las Vegas market.
In a statement, Tix Corp.’s CEO Mitch Francis praised the end of the lawsuits.
“The outcome of this settlement put an end to costly litigation; procured a valuable acquisition; licensed our patent; and established an excellent working relationship with Vegas.com,” Francis said. “This is precisely our mandate, which is to focus our capital and energies within our core business to enhance our cash flows and shareholder value.”
The break from costly litigation comes as welcome news to Tix Corp., which has had to contend with falling revenues and dropping stock prices over recent years. Only five months ago, Tix Corp.’s stock price plummeted below $1, leading to the company delisted on NASDAQ.
The future of the previously held VegasTix4Less kiosk locations is uncertain at this time, with neither company specifying a plan in the recent statement.
Last Updated on March 2, 2011