SXSW hit by a class action lawsuit in April 2020 on behalf of ticket holders who were not paid afterwards canceled the festival in Austin, Texas in the city. The fiesta and the plaintiffs are currently in a settlement for the lawsuit brought by plaintiffs Maria Bromley and Kleber Pauta, according to court documents reviewed by Pitchfork. A district court judge gave preliminary approval to the ruling on Sept. 30.
The judge’s order granting preliminary approval writes that both parties reached settlement “as a result of intensive, arm’s-long negations” during the 10-hour settlement session on Dec. 17, 2020. The preliminary the judge’s approval outlines the procedures the festival must take to reach class members. A “fairness hearing” is scheduled for Feb. 18, 2022, to determine whether the settlement should be approved as “fair, just, and adequate.”
On Wednesday, Oct. 6-days after the judge granted preliminary approval to the settlement-SXSW filed a separate lawsuit against the Federal Insurance Company for failing to fund its defense. The complaint, reviewed by Pitchfork, claims that the company refused to provide coverage coverage around the 2020 cancellation. The festival sued for breach of contract, unjust enrichment, and conversion; SXSW seeks a judicial declaration directing the Federal Insurance Company to provide compensation and protection for the activity, including loss, settlement, and protection costs.
Pitchfork reached out to lawyers for SXSW and the defendants in the class action.