A Los Angeles-based class-action lawsuit against Ticketmaster has reached a settlement that allows the ticket vendor to continue collecting processing fees but with increased transparency. The by-phone and online ticket vendor has agreed to change the wording on their website to disclose that they make a profit from the "processing" fees.
Customers involved in the lawsuit, originally filed in 2003, have begun receiving notices that tell them they'll soon get credits for fees they were charged over the past decade. These credits are not refunds but can be used towards future Ticketmaster purchases.
In October, a judge approved a preliminary settlement that will give customers a $1.50 credit for up to 17 tickets they purchased between specific dates in October 1999 and 2011. Customers will receive a $5 credit if they bought tickets and ordered expedited delivery through the United Parcel Service (UPS), the New York Times reports.
Ticketmaster will be forced to pay a minimum of $11.25 million per year for four years. This money will go towards customers redeeming their ticket credits and any unredeemed funds will go to charity.
Ticketmaster will also be required to pay legal fees for the class action, the Times reports.
"We believe that the settlement is fair, reasonable and adequate as a compromise of highly disputed claims," Jacqueline Peterson, Ticketmaster spokesperson,told CNNMoney.
The final hearing for the settlement will be held on May 29, 2012.
Ticketmaster is owned by Live Nation Inc., a live entertainment conglomerate that includes Ticketmaster.com, Live Nation Concerts, Front Line Management Group and Live Nation Network. Ticketmaster's website alone has over 26 million unique visitors every month.
To visit the official website of the class-action suit or see the official court documents, click here.