Number Crunching: Who’s the Real Winner in the Ticketmaster.com Class Action Settlement?
Hot on the heels of our previous post on the Ticketmaster.com Class Action Settlement is a little number crunching that should sum up what this settlement really means to its class members. While the total amount of the Ticketmaster.com settlement sounds like a lot, each class member will receive small (almost insignificant) discount codes to be used for future ticket purchases from Ticketmaster.com. Here’s how the numbers really break down:
$386,000,000 – The total approximate settlement amount, as estimated by the counsel.
$35,000,000 – The total cost of the settlement, as estimated by Live Nation.
$15,000,000 – The fees being sought by the plaintiffs’ lawyers.
$1,500,000 – The expense fees being sought by the plaintiffs’ lawyers.
$5.00 – The value of one UPS Discount Code, which can be used against their next UPS charge when ordering tickets from Ticketmaster.com. Class members can receive a maximum of 17 UPS Discount Codes. Maximum total codes received will total $85.
$2.25 – The value of one Order Processing Fee Discount Code, which can be used for future ticket purchases from Ticketmaster.com. Class members can receive a maximum of 17 OPF Discount Codes. Maximum total codes received will total $38.25.
After a quick glance at these numbers it seems pretty clear that the big winners in this settlement are the lawyers. They stand to receive an award of approximately $16.5 million dollars!
While Ticketmaster.com will issue approximately 161 million OPF discount codes and 4.9 UPS discount codes, the total value for each individual class member has an absolute maximum of $123.25. AND those codes must be used for future purchases with Ticketmaster.com. To be perfectly honest, this Class Action Settlement seems to be more trouble than it’s worth. Unless you’re the lawyer!
As part of the settlement, Ticketmaster.com has changed the language on its website to clarify that order processing fees and delivery charges may include a profit for Ticketmaster. I suppose this is the tiny silver lining?
In our opinion, the best thing to result from this Class Action Settlement is the very hot topic of fee transparency, but you’ll have to stay tuned for our next blog post to hear what we have to say about that!