Vivid Seats is hoping to put a class action to bed with a multi-million dollar settlement, according to Law360.com. The lawsuit involves consumer claims that the resale platform discontinued an existing refund policy due to the pandemic, and attempted to make it retroactive to events that were cancelled due to COVID.
Filed last April, the lawsuit included claims of breach of contract, unjust enrichment, negligent misrepresentation, as well as the violation of a number of state consumer protection statutes related to refunding customers for events that were cancelled.
“Absent this settlement, this litigation would be hotly litigated, extraordinarily costly, time-consuming and ultimiately reduce the likelihood that a mutually beneficial resolution could be reached moving forward,” reads a motion filed in Illinois federal court asking that the $7.5 million proposed settlement be approved.
Affected consumers would each receive a settlement amount equal to the price paid for tickets to cancelled events, unless the total claim amounts exceed the available amount in the fund. In that event, awards would be reduced across the board by an equal percentage. Plaintiffs are also seeking awards up to $2,500 for each class representative and up to $2.5 million in attorney fees and costs for the attorneys involved.
Beyond the settlement, consumers will see credits good towards future purchases issued by Vivid Seats extended through December 21, 2022.
Vivid Seats is far from the only company to be targeted by consumers over refunds and credits towards future purchases in the wake of the COVID pandemic. Live Nation successfully pushed similar lawsuits to arbitration earlier this year. Vivid Seats also saw legal action associated with its ownership in the tumultuous past 12 months, as Robert Smith of Vista Equity Partners was implicated in an enormous tax fraud scheme, escaping charges by cooperating with federal authorities investigating the alleged laundring operation.