Photo Credit: Shutterstock
Fyre Festival ticket holders won $7,220 each in a $2 million class-action settlement nearly four years after the festival in the Bahamas. On Tuesday, the U.S. Bankruptcy Court in the Southern District of New York ruled that 277 ticket holders and organizers receive the payouts, which still awaits final approval. The amount depends on Fyre’s bankruptcy case.
CEO of Fyre Medic Inc. Billy McFarland and rapper Ja Rule are co-founders of the scheduled two-weekend festival. The 2017 Fyre Festival was advertised with famous models as a lavish getaway in the Bahamas. Individuals paid between $1,000 and $12,000 for the luxury accommodations. The music festival left stranded ticket purchases with searching for luggage, shelter, and food. Documentaries dove deep into the fraudulently marketed festival on Netflix and Hulu.
Geragos & Geragos attorney Ben Meiselas is representing the ticket holders. Meiselas commented on the ruling expressing his support in the court’s decision. Lawyers representing the festival have yet to comment.
McFarland and Ja Rule faced millions from alleged fraud to breach of contract after the failed festival. McFarland pleaded guilty to mail and wire fraud and is serving six years in prison at FCI Elkton. McFarland must pay $5 million to two VIP ticket purchasers who paid $13,000 each.
“I’m committed to, and working actively to, find a way to make this right, not just for investors but for those who planned to attend,” McFarland said.
Days after the festival, Mark Geragos of Geragos & Geragos representing the plaintiffs filed a $100 million class-action lawsuit. The lawsuit stated that the co-founders knew that Fyre Festival “was dangerously underequipped and posed a serious danger to anyone in attendance” months before the scheduled date. Two days later, McFarland received another class-action lawsuit for the failed festival.
The court date to approve the ticket purchasers’ settlement is scheduled for May 13.
