Secondary ticketing provider SeatGeek has filed a $2m (€1.8m) lawsuit in a New York court against ScoreBig, the discount ticketing company that shut down at the end of last month.
ScoreBig collapsed following a liquidity crisis that left hundreds of brokers unpaid for tickets that had been sold on the website, according to Amplify. Other brokers began to cancel tickets to mitigate losses.
SeatGeek chief executive Russell D’Souza offered to pay for half of all unpaid orders for tickets sold through ScoreBig if brokers agreed not to cancel their tickets. However, many buyers were left disappointed by ScoreBig’s sudden collapse.
SeatGeek is suing ScoreBig for breach of contract and promissory estoppel, with ScoreBig and its chief executive, David Goldberg, and senior finance manager, Tyler Honaker, also named in the lawsuit.
“The nature of this action is for damages arising from defendants’ failure to pay brokers for tickets for future events listed on SeatGeek’s platform and related fraudulent misrepresentations,” SeatGeek attorney Justin Sher wrote in the court summons.
“ScoreBig has improperly failed to pay brokers for tickets for future events listed on SeatGeek’s platform. As a result of ScoreBig’s actions, brokers have and will continue to fail to fulfil orders for tickets for these events, to the detriment of users of SeatGeek’s platform.
“Moreover, ScoreBig, through its agents and officers including David Goldberg and Tyler Honaker, has exacerbated this problem by intentionally misrepresenting to SeatGeek that brokers’ fees for May, June, and July 2016 had been paid when in reality they had not been.
“SeatGeek continued to list ScoreBig’s tickets on SeatGeek’s platform and unwittingly increased its exposure to the risk of ticket orders not being fulfilled.”
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