NJ.com – The settlement, authorized by U.S. District Court Judge Douglas Arpert on Friday, could cost concert promoter Live Nation tens of millions of dollars in revenue. The 2009 class-action lawsuit accused the company — which manages the Holmdel amphitheater — of violating state consumer protection laws by padding ticket prices. The suit claimed the company broke the law by stacking a mandatory $6 parking fee on each ticket at the Arts Center, regardless of whether or not the ticket holder intended to park at the venue.
A major settlement was authorized this last Friday stating that concert goers who attended PNC Banks Art Center, in New Jersey, were wrongfully charged additional fees and are eligible to receive damages. According to the NJ.com story, nearly 363,000 people, over the span of eight years (2003-2011), were charged a $6 parking fee when they bought tickets. This fee was applied whether they parked at the venue or not. This practice is called, “padding” ticket prices, and it was deemed against the law in this case.
What does this mean for the one’s selling the tickets? Live Nation is the concert promoter of PNC Banks Art Center, and they could potentially lose tens of millions of dollars. Potentially is the key word. If all plaintiffs applied and were accepted they could cost Live Nation $38 million (not including $1.7 million already owed in lawyers fees). Although, with all class action lawsuits participation isn’t mandatory.
As of now, 10% of those eligible in the suit, about 30,000 people, have applied. April 30th is the deadline to submit a claim. Here are more details via the Live Nation Settlement website :