ULTRA FACES YET ANOTHER LAWSUIT FOR FAILURE TO DELIVER REFUNDS – [READ]

ULTRA MUSIC FESTIVAL SCRUTINIZED FOR REFUSAL TO DELIVER REFUNDS

Litigation after litigation and upon more litigation, Ultra Music Festival struggles to stay afloat. At first, the residents of Downtown Miami sued Ultra for sound pollution, displacing the homeless, and inciting bacchanalia and riff-raff. Then Corona hit and there were a dozen or so lawsuits from disgruntled patrons who, unfortunately, did not read Ultra’s fine print, which pointedly employed the term “postponement” in the even of cancelation. And although those who purchased tickets for 2020’s rager were initially nettled at the festivals “postponement,” the unfolding of corona’s hell modified the wronged as we all collectively felt much greater losses.

Upon the festival’s second subsequent year of cancelation, however, the onslaught of lawsuits were to be expected. It’s one thing to withhold capital in the event of pending postponement, it is another to withhold capital for two plus years with no promise of repayment in sight.

To put things into perspective, let’s look at how that $500 could have performed if it were invested over the past years. In 2020, the S&P 500 granted a return of approximately 15% on average. If festival goers had received a refund in 2020, then invested the funds passively, they’d be up about $75 per ticket holder, depending on their market timing. If we take into account 2019 (for those that purchased their tickets early-bird style), compounding interest really starts to work against us since the S&P 500 was up about 30% that year. If we then consider 2021’s projected capital gains, let’s say 15% in hypothetical, we’re looking at consecutive losses of 30%, 15% and 15%, which translates to a range of $75 to $360 of missed opportunity. Add back in the initial $500 and ticket purchasers are out anywhere from $575 to $860… and counting.

Multiply this loss by the number of people who bought tickets to Ultra – for perspective, 170,000 patrons attended in 2019 – and let the thought of that never-ending ripple, of all those comas, rattle your soul. The number, in grand total, adds up to somewhere between 97 and 146 million in aggregate capital.

Now, think about it in reverse. Think about what Ultra has not lost.

And on that note, best of luck to Marcus Wolf Corwin, Boca Raton’s former litigator turned consumer rights attorney, as he wages this battle – the wold is watching, waiting, and ready to listen.

For some soothing, relaxing vibes to quell this Ultra anxiety, click below.