Private investors in the viral nightmare that was Fyre Festival are now trying to get some of their money back, reports Bloomberg. They join the ranks of festival patrons and third-party vendors who have previously sought legal action against the "luxury music festival," which quickly devolved into chaos last month in the Bahamas.
Among the investors initiating this new wave of litigation is financing company EHL Funding LLC partner Ezra Birnbaum, who is suing organizers Billy McFarland and Ja Rule for defaulting on a $3 million loan. A second loan amounting up to $4 million has been connected to Carola Jain, wife of noted Wall Street executive Bob Jain, who is also taking legal action, reports the Guardian.
In the weeks leading up to Fyre Festival which was scheduled to take place over two weekends in April and May, organizers borrowed up to $7 million to try to make the venture come together smoothly, and almost $1 million of that is still unaccounted for, according to Bloomberg.
NYC investor Oleg Itkin loaned $700,000 to the Fyre Media app in April, and he has received a court hearing to petition for the freezing of Fyre Festival assets. "They made Fyre appear to be a good investment," said his lawyer, Michael Quinn. "But McFarland defaulted on the loan, and other investors, ticket holders, employees and vendors have been unable to recoup their money. No one is seeing what they're owed."
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