Metal Anarchy

Earlier today (April 15), a federal jury in Manhattan ruled that Live Nation and Ticketmaster have been operating as a monopoly. The decision is being viewed as a victory, but it is still unclear what effects it will have on the live entertainment industry.

The U.S. Department of Justice previously launched an antitrust investigation and filed a lawsuit after claiming that Live Nation’s merger with Ticketmaster created unfair competition that dominates the live event industry. The DOJ ultimately reached a settlement with the companies that included up to $280 million in damages and an order to divest exclusive booking arrangements from 13 venues.

Despite the settlement, about 30 states, including California and New York, decided to move forward with legal action against the ticketing giants. Their civil case resulted in this latest verdict.

California Attorney General Rob Bonta commented:

“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. We are incredibly proud of today’s outcome — and especially proud of our coalition made up of red and blue states alike who understood we needed to come together to protect our consumers, businesses, and state economies from Live Nation’s illegal conduct.”

Live Nation also issued a statement:

“The jury’s verdict is not the last word on this matter. Pending motions will determine whether the liability and damages rulings stand.

Live Nation will soon renew its motion for judgment as a matter of law, which the Court deferred until after the jury returned its verdict. That motion addresses all liability theories. The Court previously noted that Live Nation’s motion raises serious issues.

There is also a pending motion to strike the damages testimony on which the jury’s award was based. The Court deferred ruling on that motion as well, while noting significant concerns with the damages expert’s analysis.

Of course, Live Nation can and will appeal any unfavorable rulings on these motions.

The jury’s award of $1.72 per ticket applies to a limited number of tickets—those sold at 257 venues, which represent about 20% of total tickets—and only to purchases by fans (excluding brokers) in certain states over the past five years. Based on that scope, we believe the aggregate single damages figure would be below $150 million, which would be trebled. In connection with the DOJ settlement, Live Nation has already accrued $280 million toward state damages and civil penalty claims.

Injunctive relief will be determined by the Court after the states make a remedy proposal, which we expect in the coming weeks. In the meantime, the Tunney Act proceedings regarding the DOJ settlement will continue. We remain confident that the ultimate outcome of the States’ case will not be materially different than what is envisioned by the DOJ settlement.”