Live Nation Directors Sued for Anticompetitive Practices and Misleading Statements

Live Nation Entertainment is facing a new lawsuit from a shareholder who alleges that the company’s anticompetitive practices and misleading statements have exposed it to significant financial losses, according to a report by Bloomberg. 

This derivative lawsuit adds to the mounting legal challenges against Live Nation, coming just weeks after the Justice Department and nearly 30 states filed a federal lawsuit accusing the company of maintaining an illegal monopoly over the live events industry.

The Justice Department’s lawsuit claims that Live Nation exerts excessive control over the live music ecosystem, operating over 265 concert venues in North America and managing more than 400 musical artists. The officials argue that this level of control stifles competition and leads to consumers being overcharged, though the exact figure of overcharges will be determined later in the litigation.

Related: Live Nation May Face Antitrust Lawsuit

The shareholder’s lawsuit, filed on Friday, asserts that the alleged anticompetitive behavior and misleading information will force Live Nation to spend “significant sums of money” to address these issues. This legal action also follows a proposed investor class action that similarly accuses Live Nation of misleading shareholders regarding its adherence to antitrust laws.

The Justice Department’s complaint highlights that the 2010 merger of Live Nation and Ticketmaster, which was allowed under certain conditions to address specific antitrust concerns at the time, has not prevented the companies from engaging in more serious antitrust violations. Senior Justice Department officials have called for the breakup of Live Nation to promote competition in the live events industry.

Source: News Bloomberg Law