Ticketmaster Faces Possible Class Action Damages Exceeding $100 Million Following ‘Scalpergate’

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Lawyers are threatening Ticketmaster with new lawsuits after the Toronto Star published undercover videos connecting the company to scalper operations.

The secretly-filmed video draws a clear link between Ticketmaster and scalpers, specifically through the TradeDesk platform.   A Ticketmaster executive explains how Ticketmaster, which sells north of 142 million tickets annually, is willing to work with scalpers to provide them with ample access to tickets.  Those tickets are then resold at high prices, benefiting both the scalper and Ticketmaster.

Guess they’re in on the scam.  Now, lawyers are clamoring for blood, with a $100 million class action lawsuit already in the works.

The new evidence obtained by the Star supposedly show officials with Ticketmaster talking about their proprietary software called TradeDesk. This is a sophisticated resale software platform that essentially allows scalpers to buy and manage large ticket blocks and then resell them to the public.

The clandestine deals go against the company’s posted rules, in which a member of the public must show a credit card or government identification to claim their tickets.

If the courts agree, then Ticketmaster could be found guilty of breach of competition and consumer affairs legislation.  Merchant Law Group seem to leading the charge here, with tough talk of a class action lawsuit drawing more than $100 million in damages.  But several United States law firms are working on lawsuits.  All are alleging that the information uncovered by the Toronto Star will be instrumental in their cases.

Ticketmaster says that they have already started an internal review process to be sure that the company is operating fairly and within the law.

The company is not stranger to litigation, including battles with federal regulators.  That includes the threat of a serious federal antitrust investigation from the United States Department of Justice.  According to one report, that investigation was closed due to lack of resources.