Live Nation agrees to $20 million settlement in class action investor lawsuit
Live Nation has come to terms to settle a class-action investor lawsuit by paying $20 million to resolve claims of misleading investors about the company’s legal troubles. The lawsuit stemmed from alleged anticompetitive and monopolistic practices, prompting the Department of Justice to file an antitrust lawsuit against the company in an effort to sever ties with Ticketmaster.
In a recent court filing, lawyers representing both Live Nation and the investors informed the court of a $20 million settlement – a deal they consider to be a “fair, reasonable, and adequate” resolution. The decision to settle was influenced by the financial benefits and the significant risks and costs associated with ongoing litigation and trial. Live Nation emphasized that the settlement removes the uncertainty, burden, and expenses of prolonged legal battles, and the defendants deny any valid claims made against them in the lawsuit.
The lawsuit targeted investors who purchased shares between February 23, 2022, and May 22, 2024, leading to financial losses. Live Nation’s CEO Michael Rapino and CFO Joe Berchtold were accused of violating the Securities Exchange Act by failing to disclose information regarding potential regulatory scrutiny, fines, penalties, and reputational harm. They allegedly misled investors by attributing their revenue growth to the popularity and quality of the Ticketmaster platform without disclosing potential legal issues.
Last year, Live Nation’s attempt to dismiss the lawsuit was rejected by the court, and shortly after, the Justice Department filed an antitrust lawsuit against the company, joined by over 30 states. The government’s lawsuit claims that Live Nation engaged in monopolistic practices within the live events industry following its merger with Ticketmaster over a decade ago. The lawsuit alleges that the company controls a significant portion of concert venues in North America, represents hundreds of musical artists, and handles ticketing for a large percentage of major concert venues. The DOJ aims to undo the 2010 merger.
Live Nation denied any wrongdoing and has asked the court to dismiss the case, arguing that it is not obliged to provide access to its venues for competing ticketing platforms. While motions to dismiss like this are common in antitrust litigation, they rarely succeed when brought by the government. The trial date for the case is scheduled for 2026.
