Maura Healey threatens to sue if tickets for Boston’s defunct IndyCar race are not reimbursed
Attorney General Maura Healey is threatening to sue organizers of Boston’s canceled IndyCar race, unless they are able to come up with a plan to refund ticket buyers by June 27.
“No company in Massachusetts is allowed to market a major event, sell tickets to thousands of people, and then pull up stakes without giving people back the money they are owed,” said Cyndi Roy Gonzalez, a spokeswoman for Healey. “Consumers were promised a quick refund, but were instead left high and dry.”
According to Healey’s office, the attorney general sent subpoenas this week to IndyCar, as well as Grand Prix of Boston, and its chief financial officer, John Casey. The Attorney General’s office met Wednesday with organizers of the race—which was canceled in April amid discord between promoters and the city—and made it clear that if they do not devise a plan for paying back ticket buyers by June 27, they would prepare to litigate.
The Boston Globe reported the meeting included Casey; his lawyer, Michael Murphy; Michael Goldberg and Edward Colbert, lawyers for Boston Grand Prix; Stephen Starks, vice president of promoter relations for IndyCar; and IndyCar’s lawyer, Angela Krahulik.
“We are investigating these companies to ensure that ticket holders are made whole, and are prepared to litigate if they do not comply,” Gonzalez said in a statement.
In the subpoenas, Healey is seeking “records to help figure out who bought tickets, where the ticket money went, and why it wasn’t all returned when the race was canceled,” according to the Globe.
Casey told the Globe that he believed they would be able to come up with a plan.
After it was reported last week that race organizers had run out of money to repay ticket buyers, representatives of Boston Grand Prix suggested holding another race for Boston to help pay back the rest of the funds. The group had reportedly paid back $400,000 worth of estimated ticket sales totaling up to $2 million.
Boston Grand Prix organizers are already being sued by the national IndyCar organization for what it says is breach of contract and to force organizers to refund revenue to those who bought tickets.
Earlier this week, a Boston Herald report shed light on the race’s investors, many of whom do not expect to get back money they paid to sponsor the event.
“Chalk it up to a very expensive lesson learned,” said a spokesman for local automotive dealer Herb Chambers, who paid $100,000 in an initial sponsorship payment—money that, according to his spokesman, Chambers does not expect to get back now that the race has fallen through.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com