SXSW hit with class action lawsuit over refusal to refund tickets

Ticket holders for this year's festival were told they could receive credit for future festivals if they happen

Apr 29, 2020

Nile Rodgers and Merck Mercuriadis speak onstage during the Featured Session at the 2019 SXSW Conference and Festivals in Austin, Texas. (Photo by Matt Winkelmeyer/Getty Images for SXSW)

SXSW is on the receiving end of a class action lawsuit over their refusal to refund tickets in the aftermath of the novel coronavirus.

Billboard reported that the suit was filed on April 24 by two plaintiffs, Maria Bromley and Pauta Kleber in the U.S. District Court for the Western District of Texas. They claim to have spent over $1,000 to attend the South by Southwest event scheduled for March 12-20 in Austin, Texas. SXSW canceled its annual music festival due to the global health pandemic as the city forbade large gatherings to stop the spread of the deadly virus.

SXSW instead offered pass holders free registration that would be valid in 2021, 2022 or 2023 and a 50% discount based on how much they spent. The independent festival further stipulated that the offer expired on April 30 but could not guarantee that future festivals would occur.

“SXSW has, in effect, shifted the burden of the COVID-19 pandemic onto festivalgoers … individuals who in these desperate times may sorely need the money they paid to SXSW for a festival that never occurred,” the complaint reads.

As such, the plaintiffs believe that SXSW is operating in breach of contract and their actions are unjust enrichment.

Refusing to offer refunds was “unlawful, unconscionable and unenforceable,” according to the suit.

SXSW issued a statement to Billboard declaring that there was simply no money to issue refunds. The Austin-based festival relies on the annual event to make money and said they incurred non-recoupable costs due to the cancellation.

“SXSW, like many small businesses across the country, is in a dire financial situation requiring that we rely on our contracts, which have a clearly stated no refunds policy. Though we wish we were able to do more, we are doing our best to reconcile the situation and offered a deferral package option to purchasers of 2020 registrations.”

SXSW is just the latest entity to face litigation over their refusal to offer refunds. California festival Lightning in a Bottle, Live Nation, and StubHub have also been hit with lawsuits.

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