Alamo Intermediate II Holdings LLC, which operates Alamo Drafthouse cinemas, agreed to a $7.075 million settlement over claims that New York customers were charged “convenience fees” for online movie tickets without those fees being clearly disclosed early enough in the checkout process. The case covers people who bought e-tickets through Alamo’s website for New York screenings between Aug. 29, 2022, and Jan. 30, 2024, and paid a convenience fee; eligible customers can submit a claim for a pro rata cash payment that generally tracks how much they paid in such fees. The lawsuit was filed because plaintiffs alleged the company’s fee disclosures violated New York Arts and Cultural Affairs Law § 25.07(4), a rule aimed at preventing “drip pricing” by requiring ticket sellers to disclose the total price—including mandatory fees—before a consumer selects tickets for purchase. Even though Alamo denies wrongdoing, the settlement is significant because it puts real dollars behind the principle that mandatory add-on charges must be transparent, and it signals to entertainment and ticketing businesses that the timing and clarity of fee disclosure can create legal exposure, not just customer frustration. More broadly, the dispute fits into a growing wave of litigation and regulatory scrutiny targeting hidden or late-disclosed fees across ticketing, travel, food delivery, and other online checkout flows. Similar class actions have challenged the way service charges are presented, and regulators have increasingly framed these practices as deceptive or unfair; for ticket sellers in particular, New York’s statute adds a specific compliance hook that can drive lawsuits when fee information is not shown prominently and early, encouraging companies to redesign purchase pages so the full price is visible before key buying decisions are made.