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Could UK Class Actions Put a Stop to Ticketmaster’s Price-Gouging?

April 18, 2023

Could UK Class Actions Put a Stop to Ticketmaster’s Price-Gouging?

The following piece was contributed by Tom Davey, Co-Founder and Director at Factor Risk Management. News of another class-action lawsuit against Ticketmaster comes as little surprise, given the company’s long history of legal disputes both in the UK and North America. Described by US senator Richard Blumenthal as a “monopolistic mess”, the company has been beset with criticism and legal action ever since merging with events promoter and venue operator Live Nation in 2010. The combined entity controls around 70% of the live venue and ticketing marketplace, a situation which many believe it exploits at the expense of its customers. The latest class-action suit, filed by a Canadian law firm, centres on the alleged price-gouging of ticket sales for an upcoming concert by rap superstar Drake. A Montreal man purchased two “Official Platinum” tickets for Drake’s show on 14th July, believing it was the only date he would be performing at the Bell Centre. Having paid $789.54 for each ticket, he then discovered the next day that a second show had been added, with the same tickets each costing $350 less than what he had paid. The suit claims that Ticketmaster had been deceptive in not announcing both dates at the same time and had intentionally withheld the information about a second show to manipulate fans into overpaying. Further, the suit alleges that the tickets sold as “Official Platinum” were simply ordinary tickets relabelled as premium in bad faith. As such, compensation of the difference between the prices paid and the cheaper-priced identical tickets is being sought, as well as punitive damages of $300 for each affected customer. While collective actions are not easy to mount in North America, plaintiffs are bolstered by the fact that juries there tend to be more claimant-friendly than in other jurisdictions, including by awarding significant damages when finding in their favour. Beneficial costs rules also make such legal actions easier to bring, making the conditions sufficiently clement for group claims to proceed to trial. By contrast, the system in the UK remains more austere, operating under an unclear, unpredictable and complex regime, whether in the High Court or in the Competition Appeal Tribunal (CAT). However, there is an increasing trend of lawyers at North American firms with a UK presence, or vice versa, noticing the direction of travel set by their colleagues in the US and exploring similar actions, subject to the limitations of their respective jurisdiction. As such, Ticketmaster’s various legal issues in North America may well prove a precursor for similar UK-based claims. The current class-action facing Ticketmaster is just the latest in a series of lawsuits brought against the company for claims including price fixing and anti-competitive behaviour. The company also faced severe criticism after introducing a “dynamic pricing” model in the UK last year. Already in use in its US sales operations, the system replaces fixed-price tickets with tickets that fluctuate in price based on demand, with critics seeing the model as yet another example of Ticketmaster abusing its dominance of the market to extract even more profit from a captive consumer base. The company’s legal woes are not limited to issues over the pricing of its tickets. Following a data breach affecting 1.5m UK customers in 2018, Ticketmaster settled out of court in relation to a 40,000-strong group claim. However, the £1.25m penalty notice issued by the ICO did not confer compensation to the affected individuals, nor was it binding by the court. In any event, given the seriousness of the breach, in which personal and banking information was stolen and misused, resulting in over 60,000 bank cards being fraudulently used, such a small fine would have had little effect as a deterrent. With global revenues of over $9 billion, it is evident that large companies like Ticketmaster are able to flout the rules with limited financial impact. With little meaningful regulatory or court enforcement against the firm, Ticketmaster continues to operate with impunity, safe in the knowledge that its ballooning profits will exceed any financial penalties imposed for any wrongdoing it carries out. There are clouds on the company’s horizon, however, with US Senators earlier this year calling on the Justice Department to investigate what they called “anticompetitive conduct” by Ticketmaster in relation to its sales. Their call to arms followed a Senate Judiciary Committee hearing in February, which had convened to investigate the lack of competition in the ticketing industry and what they saw as the unfair dominance of Ticketmaster in the sector. The Senate inquiry had been prompted in part by the well-publicized fiasco surrounding ticket sales for Taylor Swift’s upcoming five-month tour. Ticketmaster’s website crashed during the sales process, stranding customers in line for “presale” tickets for hours, and eventually leading to the cancellation of the public sale. Instead, the only tickets available for purchase were listed on resale sites at sky-high prices, despite Ticketmaster’s promises to weed out scalpers, bots and resale firms from its original sales process.  A class action lawsuit duly followed the debacle, as well as reports that the Justice Department had already opened an antitrust investigation into the firm. Politicians were quick to echo the concerns of affected customers, while Tennessee’s attorney general announced a consumer protection investigation into the company after being deluged with complaints from residents of the state. Should the claims of antitrust practices be confirmed by the Justice Department, there is a high likelihood that legal teams in the UK would then explore a potential claim against the company via the CAT. This would be a lengthy, expensive and high-risk process, with any cases brought via such route needing third-party funding in order to see their way to fruition. While group actions such as the Canadian lawsuit currently facing Ticketmaster can be complex processes to negotiate, court-awarded compensation is a far more effective tool in curbing corporate malpractice when compared with the modest fines which regulators can levy. If UK law firms are to follow the lead of their North American counterparts, Ticketmaster may finally pay the price for price-gouging.

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UK Government Signals Funding Crackdown in Claims Sector Reform

By John Freund |

The UK government has signalled a renewed regulatory focus on the claims management and litigation funding sectors, as part of a broader effort to curb what it characterises as excessive or speculative claims activity. The move forms part of a wider review of the consumer redress and claims ecosystem, with third-party funding increasingly drawn into policy discussions around cost, transparency, and accountability.

An article in Solicitor News reports that ministers are examining whether litigation funding and related financial arrangements are contributing to an imbalance in the claims market, particularly in mass claims and collective redress actions. While litigation funding has historically operated outside the scope of formal regulation in England and Wales, policymakers are now considering whether additional oversight is required to protect consumers and defendants alike. This includes potential scrutiny of funding agreements, funder returns, and the role of intermediaries operating between claimants, law firms, and capital providers.

The renewed attention comes amid political pressure to rein in what critics describe as a growing “claims culture,” with the government keen to demonstrate action ahead of future legislative reforms. Industry stakeholders have cautioned, however, that overly restrictive measures could limit access to justice, particularly in complex or high-cost litigation where claimants would otherwise be unable to pursue meritorious claims. Litigation funders have long argued that their capital plays a stabilising role by absorbing risk and enabling legal representation in cases involving significant power imbalances.

While no formal proposals have yet been published, the article suggests that funding models linked to claims management companies may face particular scrutiny, especially where aggressive marketing or fee structures are perceived to undermine consumer interests. Any regulatory changes would likely build on existing reforms affecting claims management firms and contingency-style legal services.

Case Developments Commercial

Litigation Lending Funds Woolworths Shareholder Class Action

By John Freund |

Litigation Lending Services Limited has agreed to fund a large-scale shareholder class action against Woolworths Group Ltd, adding another high-profile Australian securities claim to the growing docket of funded investor litigation. The proceeding has been filed in the Federal Court of Australia by Dutton Law and focuses on Woolworths’ alleged failure to properly disclose the financial impact of widespread employee underpayments over a lengthy period.

Litigation Lending's website notes that the claim covers shareholders who acquired Woolworths shares between 26 February 2010 and 8 September 2025. It alleges that Woolworths did not adequately record and account for employee entitlements owed to salaried staff, resulting in financial statements that understated expenses and overstated profits. According to the pleadings, these accounting issues had the effect of artificially inflating Woolworths’ share price, causing losses to investors once the extent of the underpayments began to emerge through company disclosures.

Woolworths has previously acknowledged underpayment issues across its workforce, announcing remediation programs and provisions running into the hundreds of millions of dollars. The class action contends that the company’s disclosures came too late and failed to provide the market with an accurate picture of its true financial position during the relevant period. Investors who purchased shares while the alleged misstatements were in place are now seeking compensation for losses suffered when the share price adjusted.

Participation in the class action is open to eligible shareholders on a no-cost basis, with Litigation Lending covering the legal costs of running the claim. Any funding commission or reimbursement payable to the funder would be subject to approval by the court, consistent with Australia’s regulatory framework for funded class actions.

Commercial Regulatory Issues

Federal Legislation Targeting Foreign Litigation Funders Raises Industry Alarm

By John Freund |

A new federal bill seeking to restrict foreign investment in U.S. litigation is drawing sharp criticism from international litigation funders who warn the measure could significantly disrupt the industry. The legislation, introduced by Rep. Ben Cline (R-Va.), would prohibit sovereign wealth funds from backing U.S. lawsuits and impose disclosure requirements on overseas investors participating in American litigation.

According to Bloomberg Law, the proposed bill (H.R. 2675) has major implications for prominent funders including Burford Capital, Fortress Investment Group, Omni Bridgeway, Ares Management, and BlackRock. Susan Dunn of UK-based Harbour Litigation Funding characterized the current political climate as increasingly "anti-foreign," suggesting that international funders are now reassessing their U.S. growth strategies in light of the legislative push.

The bill advanced from the House Judiciary Committee with a 15-11 vote in favor of recommending it to the full House. Supporters of the legislation argue that foreign investment in U.S. litigation raises national security concerns and could allow hostile nations to influence American legal proceedings. Critics counter that the measure unfairly targets legitimate business practices and could reduce access to justice by limiting available capital for plaintiffs pursuing meritorious claims.

The legislation represents the latest effort in a years-long campaign by insurance industry groups and business organizations to increase regulation of third-party litigation funding. If enacted, the restrictions on foreign investment could reshape the competitive landscape of the U.S. litigation finance market, where international funders currently play a significant role.