Report: Company sues Indianapolis Motor Speedway over party shortfall

(Getty Images)

An event organizer is suing Indianapolis Motor Speedway in federal court for breach of contract after an Indianapolis 500 party that was supposed to raise $1 million in revenue fell far short.

According to reports by Indianapolis TV station WRTV and the Indianapolis Business Journal, California-based Karma International staged a pre-race party for Maxim magazine a few days before the milestone 100th running of the Indianapolis 500.

According to the WRTV report, Karma International expected the party to raise $1 million in revenue, but apparently only raised just $182,500. The company expected 1,500 people – at $500 per ticket – to attend. Other revenue was to be raised by selling tables.

Instead, just 418 people attended the event, according to the report, with some tickets reportedly being discounted.

As a result, the company is suing IMS to collect the remaining $817,500, according to the court filing, for reportedly “fail(ing) to perform the advertising for the Indy 500 Maxim party.”

IMS is preparing a statement to respond to the lawsuit.

Click here to read WRTV’s full report.