Eventbrite asked a Californian court to dismiss a lawsuit from investors who claim they were misled by the company, citing thet the plaintiffs failed to identify any false or misleading statements to support their claim.
A handful of Eventbrite investors claimed that the Ticketfly integration was challenging, which is opposite of what the company had promised ahead of their September 2019 IPO. Shares in the ticketing firm dropped in March and May of this year after revenue reports were lower than expected. The investors who bought shares in the company between the IPO and the financial statements this year joined together for a class action suit, hoping to capitalize on their arguments.
In the legal filing, Eventbrite said that the complaint “does not allege facts suggesting that Eventbrite made any false or misleading statement of material fact.”
“Eventbrite noted that this integration and migration process typically takes between twelve and 24 months, and warned investors about many risks inherent in the integration and migration process,” Eventbrite’s firm said in the filing. “Among other things, that Eventbrite may have difficulty assimilating the acquired technology, may fail to timely integrate acquired companies, and may experience customer loss during this process.”
As for the Ticketfly integration, the claim notes that Eventbrite did not say when the integration was set to be complete, and the documents did not promise that all of Ticketfly’s customers would transfer to Eventbrite. The company also said there is no valid claim against it under laws that regulate the sale and exchange of stock and shares. The company noted in the proposed dismissal that statements in the legal filing from investors were vague or opinion-based and the class action should be “dismissed with prejudice.”
At this time, the company and investors must wait for the court to respond.