Secondary marketplace SeatGeek has filed a $2 million lawsuit against ScoreBig and its CEO David Goldberg and Senior Finance Manager Tyler Honaker for their role in the ScoreBig crash.
“The nature of this action is for damages arising from Defendants’ failure to pay brokers for tickets for future events listed on SeatGeek’s platform and related fraudulent misrepresentations,” SeatGeek attorney Justin M. Sher wrote in a summons filed in New York court (read it here).
“ScoreBig has improperly failed to pay brokers for tickets for future events listed on SeatGeek’s platform. As a result of ScoreBig’s actions, brokers have and will continue to fail to fulfill orders for tickets for these events, to the detriment of users of SeatGeek’s platform,” the summons reads. “Moreover, ScoreBig, through its agents and officers including David Goldberg and Tyler Honaker, has exacerbated this problem by intentionally misrepresenting to SeatGeek that brokers’ fees for May, June, and July 2016 had been paid when in reality they had not been.”
Sher wrote that because of the misrepresentation, “SeatGeek continued to list ScoreBig’s tickets on SeatGeek’s platform and unwittingly increased its exposure to the risk of ticket orders not being fulfilled.”
SeatGeek is suing ScoreBig for breach of contract and promissory estoppel.
ScoreBig ceased operations late last month following a liquidity crisis that left hundreds of brokers unpaid for tickets sold on the site. Many brokers began to cancel tickets on unsuspecting customers to recover some of their losses, with many fans showing up to games and concerts only to find out their tickets didn’t work.
“We wish brokers didn’t have to choose between ruining a fan’s night and taking a financial hit,” D’Souza wrote in a letter to brokers. “We want to give sellers another option: out of pocket, SeatGeek will cover 50% of all unpaid orders for future events referred by SeatGeek. In return, we ask that ticket sellers deliver these tickets to consumers. And of course we request that sellers deliver tickets they were paid in full for. This does not waive a seller’s ability to recoup payment from ScoreBig.”