Live Nation Settles Shareholder Suit for $20 Million

Live Nation Settles Shareholder Suit for $20 Million

Introduction

Entertainment powerhouse Live Nation has agreed to pay $20 million to settle a shareholder class action lawsuit that accused the company of misleading investors about its compliance with antitrust laws and competition within the industry.

The proposed settlement was filed in federal court in Riverside, California, and awaits a judge’s approval.

Allegations of Misleading Disclosures

The lawsuit, originally filed in August 2023, claimed that Live Nation violated U.S. securities laws by failing to disclose key regulatory risks and its cooperation with ongoing government investigations. Shareholders argued that the company’s statements misrepresented the true source of its financial success, which allegedly stemmed from anti-competitive practices by its subsidiary Ticketmaster, including retaliation against businesses that declined to partner with it.

Settlement Details and Denial of Wrongdoing

Live Nation has denied any wrongdoing in agreeing to the settlement, stating it chose to settle purely to avoid the uncertainties and costs of continued litigation. The company emphasized that the agreement should not be interpreted as an admission of liability.

Attorneys Praise Terms of Agreement

Attorneys representing the shareholders described the proposed deal as “fair, reasonable, and adequate,” noting that it was reached after extensive negotiations and contested litigation. The $20 million represents approximately 3% of the estimated $743 million in potential damages, which lawyers said is in line with similar class action settlements.

Legal Fees and Next Steps

The legal team intends to request up to 33.3% of the settlement amount, or about $6.7 million, in attorney’s fees. A preliminary hearing for settlement approval is scheduled for April 24.

Ongoing Legal Battles

Live Nation continues to face additional legal challenges, including a consumer antitrust lawsuit in Los Angeles and separate claims from the U.S. Justice Department in Manhattan. The company denies the allegations in those cases as well.