Ticketmaster to pay $10M to settle hacking charges
NEW YORK >> Ticketmaster agreed on Wednesday to pay a $10 million fine to escape prosecution over criminal charges accusing the company of hacking into the computer system of a startup rival.
A judge in federal court in New York City signed off on the deal in what’s been a long-running legal battle that challenged Ticketmaster’s dominance over ticket sales for concerts by major music acts. The Live Nation subsidiary had been facing multiple charges of conspiracy to commit hacking and wire fraud targeting a Brooklynbased company called Songkick.
Ticketmaster had already paid $110 million in 2018 to settle a civil suit brought by Songkick.
Court papers accused Ticketmaster of trying to infiltrate systems created by Songkick for artists that had hired the startup to help sell up to 10% of seats for U.S. tours directly through their fan clubs. The arrangement was seen as a way to reward loyal fans while thwarting scalpers — and also something that could cut into profits for the Ticketmaster empire.
Ticketmaster employees “repeatedly — and illegally — accessed a competitor’s computers without authorization using stolen passwords to unlawfully collect potential business intelligence,” said Acting U. S. Attorney Seth DuCharme.
A statement from Ticketmaster on Wednesday said that the conduct involved only two employees who were fired in 2017.
“Their actions violated our corporate policies and were inconsistent with our values,” the statement said. “We are pleased that