US sues REPS & Co. over alleged ticket buying scheme involving Beyoncé and Pitbull shows

The US Justice Department and Federal Trade Commission filed a civil complaint on October 15 against ticket broker REPS & Company Inc. and three executives in federal court in Southern California. The agencies allege the company bypassed purchase controls to acquire tickets for resale, limiting the access those controls were meant to protect. The claims have not been adjudicated.

The agencies allege that, since 2022, the defendants spent more than $1.3 billion buying over 18.5 million tickets for thousands of events and made at least $120.8 million in profit. Rolling Stone reported that the complaint puts the number of events at no fewer than 83,000. The figures describe the alleged scale of the operation, not a court finding.

How the complaint says ticket limits were bypassed

The complaint alleges violations of the FTC Act and the Better Online Ticket Sales Act, a federal law aimed at preventing buyers from circumventing ticket sellers’ security measures. According to Billboard, the alleged tactics included thousands of accounts and workers in the Philippines to get around purchase limits. Billboard also reported that an internal ‘Error Bible’ tracked Ticketmaster error messages encountered during the alleged effort to bypass security controls.

The tickets were then sold on the secondary market, the Justice Department said. Billboard reported that the complaint identifies resale platforms including StubHub, Vivid Seats, SeatGeek, Gametime and Ticketmaster’s resale platform. The lawsuit focuses on the defendants’ alleged buying tactics; naming a resale platform does not establish that the platform took part in those tactics.

Beyoncé and Pitbull concerts cited in the lawsuit

For a Pitbull concert in Syracuse on September 7, 2024, the complaint alleges REPS used at least 700 accounts to buy 5,430 tickets and made about $120,109 in resale profit. Rolling Stone reported that those tickets amounted to nearly one-third of the venue’s capacity. The figures are allegations about specific shows within the broader case, rather than totals for either artist’s tour.

Rolling Stone and The Hollywood Reporter reported that their attempts to reach REPS for comment were not immediately successful; Billboard also reported no immediate response. The Justice Department says the complaint contains allegations only and that liability has not been determined. The case is proceeding as a civil lawsuit in the US District Court for the Southern District of California.