The list of lawsuits against Fyre Festival continues to grow with ticket provider Tablelist adding to the pile. Today, Tablelist filed a complaint against Fyre Festival to recover approximately $3.5 million in ticket sales so the company can issue refunds to their customers, which seems less and less feasible with each new lawsuit.
Tablelist is claiming that festival organizers defrauded it into selling $3.5 million in tickets, then took the money and left the ticketing platform to deal with chargebacks and refunds.
The suit, filed in Suffolk County Superior Court in Boston, Massachusetts accuses Fyre Media, Inc., and its leaders William McFarland, Ja Rule, Grant Margolin and Carola Jain of breach of contract and fraudulently deceiving Tablelist and ticket purchasers. The suit also asks the court to award damages for the impact to Tablelist’s business.
According to the complaint, organizers conducted a misleading and highly-orchestrated scheme to convince Tablelist to provide ticketing-processing services for the festival, which was falsely slated as a luxury event. With high-profile celebrity endorsements, significant sponsorship deals and a competitive bidding process for the ticketing vendor role, the complaint claims Tablelist was falsely lured into believing the festival was financially stable.
According to a release, Tablelist asserts that based on these assurances it sold “more than $3.5 million in concert tickets and VIP experiences, passing nearly every dollar through to the Fyre Festival organizers and retaining only 10 percent in escrow for potential consumer credit card chargebacks and ticket refunds, and a transaction service fee.”
“Like so many other companies, investors and endorsers, Tablelist – and our customers – are victims of a fraud,” Julian Jung, Tablelist CEO, said in the release.
Since the disastrous event, organizers promised customers that they could seek refunds which led to millions of dollars worth of chargebacks and refund requests for Tablelist to handle. According to the suit, the amount far exceeds the depleted escrow funds. Tablelist says it immediately demanded money back from Fyre Media, but has yet to see a penny for the company to pass onto its customers.
“Fyre Festival organizers completely left us hanging out to dry as the middleman between this disastrous event and our ticketholders,” Jung said. “All the money sits with Fyre, and we’re fighting back to get those funds to our customers, where they belong.”
Since the Fyre Festival’s spectacular failure, Tablelist, a startup founded in 2013, has had to lay off 40 percent of its workforce on the consumer side of its business while it focuses on the litigation to do right by its customers.