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Eventbrite faces shareholder lawsuits over Ticketfly integration
By Chris Cooke | Published on Friday 7 June 2019
Having successfully fought off a lawsuit over the Ticketfly data hack (for now at least), ticketing company Eventbrite is facing new litigation that is again related to its Ticketfly division. Or, specifically, to what it said about its 2017 acquisition of the Ticketfly business ahead of its own IPO last year.
Shares in Eventbrite took a bashing in both March and May this year following statements from the company regarding revenues and revenue projects – which were lower than expected – and also the challenges around integrating the Ticketfly business with its own.
The latter admission, some argue, is contrary to what Eventbrite said about its Ticketfly buy when wooing investors ahead of its IPO last September. To that end, law firm Scott+Scott has now announced that it is filing a class action lawsuit against the ticketing outfit and is inviting anyone who bought shares in the Eventbrite IPO to get in touch.
The lawyers say that their class action suit “alleges that in [its] IPO registration statement, Eventbrite stated that its acquisition of Ticketfly ‘had a positive impact on our net revenue growth’ in the third quarter of 2017. [In March 2019], however, Eventbrite reported its annual financial results and, in a related conference call, stated that the strategy to integrate Ticketfly ‘will impact revenues in the short-term’. On this news, shares of Eventbrite fell more than 24%”.
“The complaint alleges”, it then goes on, “that Eventbrite made false and/or misleading statements and/or failed to disclose that, at the time of the offering, the migration of creators from Ticketfly to Eventbrite was progressing more slowly than stated, forcing the Ticketfly integration to take longer than expected, and the company would thereby face headwinds in revenue and growth”.
With that in mind, the law firm says it wants to hear from anyone who “purchased Eventbrite securities in or traceable to the company’s IPO [or] acquired Eventbrite securities between 20 Sep 2018 and 7 Mar 2019”.
Scott+Scott is actually the fourth American law firm to instigate class action proceedings against Eventbrite in relation to is pre-IPO statements on the Ticketfly integration. It is not yet clear how eager the ticketing firm’s shareholders are to actually participate in these actions.
