Instagram Influencers Facing Subpoena In Fyre Festival Bankruptcy

Instagram influencers such as Kendall Jenner may be subpoenaed in a Fyre Festival bankruptcy case following a recent court order.

Gregory Messer, who is acting as bankruptcy trustee in the liquidation of Fyre Festival LLC, recently won court approval to subpoena Kendall Jenner Inc., IMG Models LLC, and other entities.

The subpoenas and examinations will aim to determine what value Fyre Festival received for the money it paid the Instagram influencers.

This recent request for examinations is the fourth time Messer has won approval from Judge Martin Glenn to inquire with vendors.

Each time he makes a request, Messer has noted that much of his essential information comes from outside sources because Fyre Festival originator and Fyre Media Inc. CEO William “Billy” McFarland is in prison and typical bankruptcy disclosures haven’t been made.

“Due to the lack of basic disclosures and books and records, the trustee has been forced to obtain critical financial information related to [Fyre Festival LLC] through third parties,” Messer wrote in his recent request. “The debtor maintained only one bank account of its own, which it used exclusively in connection with booking air travel. All of the debtor’s funds were run though Fyre Media or other non-debtor accounts, including Billy McFarland’s personal accounts.”

The recent order means that numerous other entities who may have played various roles in the event could be examined, including:

• Gusto (human resources management company);
• Aircraft Services Group Inc. (private plane chartering company);
• Special Events Flooring (wood flooring provider);
• JP Gutfreund (consultant/investor);
• Chef Ellis Duff Pastries Catering;
• Bricksquad Monopoly Inc. (musician management firm);
• F. Butler Associates (consultant);
• MPR Audio Systems LLC (sound system entity);
• Healthpass Insurance (health insurance company);
• C. Macduffs Ltd. (bar/restaurant);
• Deandre Way (musician);
• Leroy Archer (consultant/investor);
• Brooklyn Events Center LLC (real estate company);
• Eyes Above Water LLC, (a musician’s company);
• Guildsmith (production company);
• Zero Party LLC (promoter);
• Jerry Media LLC (social media company);
• and United Talent Agency.

The 2017 Fyre Festival, which a recent Netflix documentary has dubbed “The Greatest Party That Never Happened,” was supposed to be a lavish, high-class music festival in the Bahamas including big name artists and lodging.

However, when ticket holders arrived, they were met with the festival ground in disarray, no artists to be found, and only cheese sandwiches to eat.

When partygoers returned to the United States, many of them took legal action against Fyre Festival’s organizers. Plaintiffs in class action lawsuits against Billy McFarland, Fyre Media Inc., and Ja Rule claimed that they were forced to endure awful conditions without sufficient food and accommodations.

“Festival-goers survived on bare rations, little more than bread and a slice of cheese, and tried to escape the elements in the only shelter provided by Defendants: small clusters of ‘FEMA tents,’ exposed on a sand bar, that were soaked and battered by wind and rain,” an early Fyre Festival class action claimed.

In August 2017, plaintiffs in Fyre Festival class action lawsuits asked to have their claims centralized in a consolidated suit based in California, New York, or Florida.

The Fyre Festival Bankruptcy Case is In re: Fyre Festival LLC, Case No. 17-­11883-­mg, in the U.S. Bankruptcy Court for the Southern District of New York.

UPDATE: On July 10, 2019, a federal judge dismissed claims against rapper Ja Rule and Fyre CMO Grant Margolin in a class action lawsuit filed by Fyre Festival attendees who claim that the infamous festival was not the luxury experience that was advertised.