A ticketing company is suing the organizers of the cancelled Formula E electric car race originally scheduled in Vancouver for more than $3.3 million.
The One Stop Strategy (OSS) Group had sold an estimated 30,000 tickets to the July 2 Canadian E-Fest, when it abruptly announced the event had been “postponed” in April.
While organizers had initially said customers would get information about refunds in July, ticketholders have complained about silence from the company.
On Wednesday, ATPI Travel and Events Canada — the company that acted as ticketing provider for the event — said it had filed a lawsuit against OSS for reimbursement of ticket sales “after multiple attempts to reach the company.”
“We want to make it clear that the OSS Group has the sole responsibility with respect to the refund process,” the company said in a statement.
“However, despite being clearly and contractually required to do so, the OSS Group has not returned the ticket sale proceeds for ATPI to process the ticket refunds.”
The suit, filed in Quebec Superior Court, claims its contract with OSS requires “the sale proceeds as well as all related costs … be returned to ATPI within 30 days for customer refunds.”
The company claims that it was told by OSS the event had been postponed in April, and only learned it had been cancelled, through media statements, in June.
It alleges it has been seeking a return of the funds since the end of June, “however, despite being clearly required to do so, Defendants illegally refused and/or neglected in bad faith to comply with their obligations and did not even see to refund customers.”
As a result, ATPI claims, customers have been seeking refunds directly from it and filing credit card “charge backs,” which have resulted in more than $560,000 being directly debited from its own account.
The company is looking for more than $2.78 million in ticket sale proceeds, which it says it will refund to ticketholders, along with more than $656,000 to cover fees and costs for its services and customer refunds.
Global News has requested comment from the OSS Group. Last month, the company insisted it intended to refund customers.
At the end of July, the City of Vancouver said it would refund a $500,000 “performance security” payment to OSS Group, on the condition that the money be used to refund ticketholders and vendors, and that company and city retain a lawyer to assess the organizer’s financial records.
OSS Group rejected that offer, with CEO Matthew Carter telling Global News last month the company was not “legally” allowed to accept the funds on the city’s terms.
“These were funds that were given to the City of Vancouver for an event that never happened, and they need to be paid back to us with no strings attached, that’s the end of the conversation,” he said.
“I am more than happy to follow the direction of the councillors on the vote they gave, but the way that’s been interpreted by city staff is impossible, and they know is impossible for us to accept.”
None of the claims have been proven in court.