Leading ticket sales company Ticketmaster has been slapped with a class-action lawsuit over the failure to prevent a recent hacking incident that allegedly led to the theft of 560 million users’ private data.
It accuses the defendants of failing to “properly secure and safeguard Plaintiffs’ and other similar situated individuals’ personal identifiable information.” The class action follows a “recent targeted cyberattack against Ticketmaster that enabled a third party to access Defendants’ computer systems and data, resulting in the compromise of highly sensitive Private Information.”
On or around May 28, the private information of 560 million Ticketmaster users was allegedly hacked and put up for sale.
Plaintiffs claim that a hacker group called ShinyHunters stole 1.3 terabytes of personal data and was reportedly looking to sell, or had already sold, the information for half a million dollars.
The lawsuit includes a screenshot of an alleged post by the hacker group on the dark web marketplace BreachForums that listed details of the stolen data and the selling price.
The data allegedly include names, addresses, email IDs, phone numbers, ticket sales numbers, event information, order details, partial payment card data, card expiration dates, and customer fraud details.
As of May 29, the companies hadn’t released a statement or notified customers that their private details likely had been compromised and were potentially in the hands of criminals, the lawsuit states.
This puts Ticketmaster customers in the dark as they remain unaware that their private info could be used for identity theft, phishing scams, and other cybercrimes, the plaintiffs wrote.
“On May 27, 2024, a criminal threat actor offered what it alleged to be Company user data for sale via the dark web,” according to the filing.
Live Nation said it had notified law enforcement about the hack and was cooperating with officials.
“We are also notifying regulatory authorities and users with respect to unauthorized access to personal information,” the company said.
The company pointed out that the incident hasn’t had a “material impact” on operations or the financial condition of the business.
In the lawsuit, plaintiffs alleged the data theft was a “direct result” of the defendant’s failure to implement reasonable and adequate cybersecurity measures to prevent criminals from accessing user data.
When the companies acquired the personal data of customers, they “assumed a duty” to take necessary steps to protect that info and were obliged to implement strict safety measures consistent with industry standards as required by the Federal Trade Commission Act, the lawsuit states.
Now that private data have been stolen, users may have to face out-of-pocket expenses related to “preventing, detecting, and remediating identity theft, social engineering,” and other unauthorized use of information, it states. Plaintiffs are now forced to closely monitor their financial accounts to protect themselves from potential identity theft.
The lawsuit accuses the companies of negligence, breach of implied contract, breach of fiduciary duty, and unjust enrichment.
To remedy these violations, the lawsuit seeks actual damages, restitution, and statutory damages. It asks for injunctive and declaratory relief, including requiring the companies to implement “significant improvements” to their data security policies.
DOJ Lawsuit
The lawsuit comes after the U.S. Department of Justice (DOJ) announced another lawsuit against Live Nation and Ticketmaster on May 23. The DOJ was joined by 30 state and district attorneys general in filing the civil antitrust complaint.The lawsuit accuses Ticketmaster of monopolizing the market for the live entertainment industry, thus thwarting competition in the sector. Because of that monopolization, American music fans are forced to use outdated technology while paying more for concert tickets than people from other nations.
In addition, the companies exercise power over venues, independent promoters, and performers in a way that harms competition. It also imposes barriers that limit the entry and expansion of potential rivals in the sector, the department said.
“Today’s announcement reflects the latest efforts by the Justice Department to combat corporate misconduct,” Deputy Attorney General Lisa Monaco said. “Our fight against corporate wrongdoing includes an intense focus on anticompetitive conduct—which disadvantages consumers, workers, and businesses of all kinds.”
The lawsuit seeks “structural relief” to restore competition in the industry and offer better choices to fans.
The company pointed out that service charges at Ticketmaster are no higher than what other sellers charge and that the company’s fees are actually “frequently lower.”
It claimed that the real reason for “fan frustration” over high ticket prices is rising production costs and the popularity of artists. The firm also blamed ticket scalping practices, which shows “the public’s willingness to pay far more than primary tickets cost.”
In April, California lawmakers introduced Assembly Bill 2808, which seeks to prevent companies such as Ticketmaster from having exclusive control over event ticket sales.
