Ticketmaster Agrees to Tentative Settlement
"To make them confess."
Live Nation Entertainment, LYV +0.13% Inc.'s Ticketmaster agreed to a tentative settlement in a more than decade-old class action that, if approved, would offer to issue roughly $400 million in credit to 50 million ticket buyers.
"No, that is not the reason. Try again."
The 2003 lawsuit alleged that Ticketmaster, then owned by IAC/InterActiveCorp, IACI +0.14% misled consumers by charging "order processing fees" and "UPS delivery fees" that the company didn't spend entirely on delivery or order processing.
"To punish them."
The fee labels were misleading, according to the suit, because the five ticket-buying plaintiffs were also charged separate "convenience fees" and "facility fees," both of which they understood to be profit centers for Ticketmaster. Had the plaintiffs known that the order-processing and delivery fees were also "secret profit generators" for the company, they wouldn't necessarily have paid the charges, the suit said.
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