Las Vegas Grand Prix and Liberty Media have agreed to pay more than $3 million to settle a class-action lawsuit arising from the disrupted inaugural Formula 1 event in 2023. The proposed settlement concerns thousands of spectators who were forced to leave the circuit before the delayed second practice session following the loose drain-cover incident that badly damaged Carlos Sainz’s Ferrari.
The settlement fund totals approximately $3.05 million and still requires final court approval. Neither Liberty Media nor Las Vegas Grand Prix has admitted liability for what happened during the 2023 event, with the agreement instead intended to bring the long-running legal dispute to an end.
Las Vegas GP lawsuit stems from Carlos Sainz drain-cover incident
The controversy began during the opening practice session of the inaugural Las Vegas Grand Prix. A loose water-valve cover on the circuit caused extensive damage to Carlos Sainz’s Ferrari and forced Formula 1 to stop the session while the track was inspected and repaired.
The incident led to a delay of around two and a half hours before running could resume. Spectators holding Thursday-only practice tickets, as well as fans with three-day passes, were ultimately required to leave the venue and were not allowed to remain for the rest of the night.
According to the allegations made in the lawsuit, the event could have continued with spectators safely present. The organisers nevertheless cleared the grandstands before the final practice running took place.
Neither Liberty Media nor Las Vegas Grand Prix has admitted wrongdoing in connection with the incident.
Original lawsuit sought $5 billion in damages
The class action was originally filed in 2023 and initially sought damages of $5 billion. Part of the complaint was dismissed in February 2025, but the plaintiffs subsequently submitted an amended version that allowed the case to continue.
The dispute has now reached a proposed out-of-court settlement worth $3,047,986. A federal court must still grant final approval before compensation can be distributed to eligible spectators.
A final fairness hearing is scheduled for 9:00am on 4 November 2026 before the United States District Court for the District of Nevada.
Which Las Vegas GP fans will receive compensation?
Spectators who bought eligible tickets directly through the Las Vegas Grand Prix or Ticketmaster will receive a cash payment without needing to submit a separate claim.
Fans who obtained their tickets through other eligible channels must instead submit a claim form by 27 August 2026 in order to qualify for compensation.
The amount ultimately paid to each eligible spectator will depend on the total number of claimants and the deductions made from the settlement fund. Legal fees are capped at $914,396, with other approved costs also taken into account before payments are distributed.
Liberty Media and Las Vegas GP admit no wrongdoing
The settlement documentation makes the defendants’ position clear: “Neither Liberty Media nor the Las Vegas GP has admitted any fault for the 2023 incident.”
The organisers have indicated that the decision to settle was taken to avoid the additional expense and time associated with continuing the litigation, while still providing tangible compensation to the fans affected by the disruption.
The intention is to close the legal dispute and focus on the future of the Las Vegas Grand Prix, which has already secured a long-term place on the Formula 1 calendar.
The Nevada event has been confirmed through 2037 after Formula 1 and the relevant Las Vegas stakeholders agreed a new 10-year extension in 2026. Despite the problems that marked the opening night of its inaugural edition, the race has therefore become a long-term part of Formula 1’s presence in the United States.
2023 Las Vegas controversy moves closer to conclusion
The settlement brings the legal fallout from one of the most controversial moments of the inaugural Las Vegas Grand Prix closer to an end. Thousands of fans had arrived expecting to watch Formula 1 practice on the Strip, only for the drain-cover failure and subsequent delays to drastically alter the evening.
Although the agreed amount is dramatically lower than the $5 billion originally sought, the proposed settlement establishes a direct compensation process for eligible spectators affected by the disruption.
Final approval from the court is still required, meaning the legal case has not formally concluded yet. If the settlement is approved at the November hearing, the compensation process can proceed and one of the lingering issues from Formula 1’s 2023 return to Las Vegas will finally move towards closure.
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