New York’s attorney general Letitia James has reached a settlement in a lawsuit against secondary ticketing companies TicketNetwork Inc. (TN), Ticket Galaxy (TG) and their owner Donald Vaccaro.
The companies and Vaccaro were accused of “tricking tens of thousands of unsuspecting customers into purchasing tickets to concerts, shows, and other live events that the sellers did not actually own.”
The settlement was for $1.55 million, subject to court approval, and includes a requirement to take measures to further protect ticket-buyers.
“Because of their dishonest practices, these companies defrauded thousands of New Yorkers and duped customers into spending millions of dollars on speculative tickets,” says James. “We are holding these companies accountable for their deceptive practices … and are putting in place reforms to protect ticket buyers in the future.”
Speculative tickets are defined by New York State as “offers by ticket resellers to sell tickets they do not have”, and only when a consumer placed an order did the tout/scalper attempt to purchase tickets to resell at a profit. TG was also accused of often listing tickets before the promoter had put them on sale.
Vaccaro is also the publisher of TicketNews, an online newsletter.