Manatt’s Ronald Blum, a partner in the litigation practice, is representing Eventvest in a lawsuit against the New York attorney general in state court.
The ticket company, which does business as Ticket Galaxy, filed the lawsuit with TicketNetwork Inc seeking declaratory judgment that their practice of occasionally offering tickets for sale that the seller does not yet own, as they claim on the site, is legal, according to Law360.
Eventvest said in its complaint that New York Attorney General Barbara D. Underwood is mistaken in her recent allegations that Ticket Galaxy misrepresents that it already owns all of the tickets that it sells in a small subset of the site’s ticket sales.
“On the contrary, all customers who order tickets from Ticket Galaxy that are not yet owned by the company are fully informed that the tickets are not in Ticket Galaxy’s possession and that their availability cannot be guaranteed,” Eventvest said in its complaint.
Both companies argue that this “drop shipping” practice is common both online and in retail stores, and is regularly endorsed by companies such as Amazon and eBay.
The suit also alleges that Underwood is incorrect in her assertion that this practice is illegal. Both companies noted that they fully disclose to their customers that they may be bidding on tickets owned by third parties.
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