Live Nation slapped with class-action suit after DOJ investigation – Washington Examiner

Live Nation is now facing a class-action suit seeking damages after a previous lawsuit from the Department of Justice was announced this week.

Law firms Robbins Geller Rudman Dowd and Israel David filed their suit in Manhattan federal court late Thursday after the DOJ’s investigation into Live Nation went public and hours after Attorney General Merrick Garland confirmed in a press conference that the department was suing the company. Attorneys are seeking $5 million in damages for previous clients of Ticketmaster.

This comes over 10 years after Ticketmaster paid each of its customers as much as $25 in credit toward future purchases as part of a class action settlement from 2011. In 2003, the company faced allegations of overcharging customers and opted to settle rather than take the matter to court.

The Washington Examiner reached the involved law firms for comment.

Now Live Nation stands accused of violating Section 2 of the Sherman Act due to allegations of acquiring competing event promoters and forcing venues and artists alike into exclusionary contracts for as long as 10 years in some cases. Garland claimed it controls 80% of ticket sales to major concert venues, has contracts with 400 entertainers, and owns or controls 60% of amphitheaters. As a result, Garland said, “It is time to break it up.”

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Live Nation pointed to its 1.4% annual net profit as a reason it does not consider itself a monopoly in a statement to the Washington Examiner. The lawsuit, according to the company, will only serve as a “PR win for the DOJ in the short term” and forgot that the Obama administration approved of Live Nation’s acquisition of Ticketmaster at the time.

Its executive vice president, Dan Wall, warned that the lawsuit will not lower prices or fees as prices are set by artists and fees are determined by venues. He claimed Ticketmaster’s market share has declined since 2010, which is proof it is not a monopoly.

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