Eventbrite has been granted its bid to dismiss a lawsuit accusing the ticketing firm of misleading investors about its Ticketfly acquisition.
California judge Edward Davila ruled to dismiss the class-action suit in its entirety, while offering investors the option to amend their complaint by June 24 to make it more specific, Law360 reports.
Investors that purchased shares in the San Francisco-headquartered ticketing company between its September 2018 IPO and Eventbrite’s 2019 financial statements banded together for a class action suit, claiming Eventbrite’s integration with Ticketfly was proving to be more challenging than the firm had suggested.
In addition, shares in the ticketing company fell in both March and May of 2019 after revenue projections were much lower than expected.
Eventbrite denied that there was any valid claim against it and filed a counter complaint stating that the suit “does not allege facts suggesting that Eventbrite made any false or misleading statement of material fact.”
Judge Davila said in his ruling this week: “Plaintiffs’ vague allegations that the Ticketfly acquisition was ‘delayed’, ‘costly’ and that the integration missed ‘key features’ are insufficient to show that defendants ‘affirmatively’ created an impression of a state of affairs that differs in a material way from reality.
“In fact, a closer inspection of Eventbrite’s SEC filings appears to belie plaintiffs’ claims that the company projected that the Ticketfly integration was going ‘smoothly.’”
Eventbrite’s share price has taken another dive amid the COVID-19 shutdown of live events, with stocks trading at just under $10, up from a low of $5.86 on April 3.
Eventbrite has been contacted by TheTicketingBusiness.