In the latest development of Live Nation Entertainment Inc.’s antitrust lawsuit, a federal jury in Manhattan decided last Wednesday that the company and its subsidiary Ticketmaster have overcharged customers in a monopoly.
This is a win for the 33 states and Washington D.C. behind the suit, who alleged that the Beverly Hills-based ticketing giant drove up ticket prices and stifled competition. The states have decided to push forward after the U.S. Department of Justice reached a $280 million settlement March 9 with the company.
“This is a historic and resounding victory for artists, fans and the venues that support them,” said California Attorney General Rob Bonta in a statement. “In the face of dwindling antitrust enforcement by the Trump Administration, this verdict shows just how far states can go to protect our residents from big corporations that are using their power to illegally raise prices and rip-off Americans.”
Live Nation issued a statement after the verdict, saying that several pending motions will decide if the rulings stand. The company will also appeal rulings on the motions.
“The jury’s verdict is not the last word on this matter.” the statement reads. “We remain confident that the ultimate outcome of the States’ case will not be materially different than what is envisioned by the DOJ settlement.”
The settlement requirements
The previous settlement required the company to cap its service fees at 15% of face value and allow venues to work with rivals. It also enables Ticketmaster to stay under the umbrella of the conglomerate, which acquired it in 2010.
Since the verdict came out, Live Nation’s stock dropped around 6.4% to close at $155.82 Wednesday. Its stock market performance bounced back slightly Thursday to close at $160.54 a share.
The company closed the last fiscal year with a 9% rise in revenue, earning $25.2 billion. It works with about 400 venues nationwide.
