New Jersey Residents File Class Action Lawsuit Against Ticketmaster

On May 5, 2009, John E. Keefe, Jr. of Keefe Law Firm in Red Bank, New Jersey on behalf of New Jersey residents and others similarly situated have filed a national class action lawsuit in the District Court of New Jersey against defendants, Ticketmaster Entertainment, Inc. (“Ticketmaster”) and TicketsNow.com, Inc. (“TicketsNow”), for violations of the consumer protection and common laws.

In their Class Action Complaint, plaintiffs allege that Ticketmaster and TicketsNow, a wholly-owned subsidiary of Ticketmaster, artificially manipulated the market price of concert and event tickets by wrongfully directing tickets from Ticketmaster’s website to Ticketsnow.com’s website. Ticketmaster is the world’s largest ticket services company. Through agreements with venues, artists and event promoters, Ticketmaster obtains, usually exclusive, rights to sell tickets to sporting, music and other entertainment events. TicketsNow operates as a marketplace and broker in the secondary resale market for concert and event tickets. Tickets in the secondary market are routinely sold at much higher prices than the face values of the tickets.

Investigation has revealed that, within minutes or seconds of tickets going on sale, potential purchasers of tickets who logged onto the Ticketmaster website were informed that tickets to such events were sold out or otherwise unavailable. These individuals, including the Plaintiffs, were then rerouted directly from Ticketmaster’s website to TicketsNow.com. The format and layout of the two websites, however, purposely concealed that TicketsNow is a separate entity, which sells tickets on the secondary market and at above face value. In fact, TicketsNow expressly identifies itself as a Ticketmaster company. Consequently, customers redirected to TicketsNow believe that they were purchasing tickets at face value directly from Ticketmaster. The fact that they were not buying tickets at face value was not revealed by defendants until after the tickets were purchased. By wrongfully manipulating the primary and secondary markets for tickets, Ticketmaster and TicketsNow have been unjustly enriched and earned substantially greater commissions and other charges than would have been realized had the tickets been sold through the primary markets to consumers, including the plaintiffs.

A copy of plaintiffs’ Class Action Complaint is available upon request or through accessing the New Jersey District Court’s website.

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