Live Nation to Pay $20M to Settle Lawsuit Claiming It Failed to Warn Investors About Antitrust Risks
Written by djfrosty on March 24, 2025
Live Nation has agreed to pay $20 million to settle a lawsuit claiming the company failed to warn investors about the kind of anticompetitive behavior that ultimately led to the Justice Department’s sweeping antitrust case.
In a filing Friday (March 21) in California federal court, attorneys for the plaintiffs said the deal with Live Nation would provide a “fair, reasonable, and adequate result” for thousands of investors who could be covered by the settlement. Live Nation continues to deny any wrongdoing, according to the court filings.
The case, filed in August 2023 as a proposed class action, claimed that Live Nation had failed to disclose to investors that it had engaged in anticompetitive conduct that was “likely to incur regulatory scrutiny and face fines, penalties, and reputational harm.”
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“Defendants made materially false and/or misleading statements and omissions of material fact about the company’s compliance with antitrust laws, its cooperation with governmental investigations, and the regulatory risks it was currently facing,” attorneys for the investors wrote.
As the government’s antitrust investigation was slowly revealed in the press — and then the blockbuster case was finally filed in May — Live Nation’s share price dropped, allegedly causing investors to face “significant” losses.
“The gradual revelation of the truth about the company’s anticompetitive conduct in violation of antitrust laws, refusal to fully cooperate with investigators, and undisclosed risks of regulatory action caused precipitous declines in the market value of the company’s stock,” attorneys for the investors wrote.
The DOJ and dozens of states filed their case in May, with the aim of breaking up Live Nation and Ticketmaster over accusations that they form an illegal monopoly in the live music industry. The case, which remains pending, accuses the company of a wide range of wrongdoing, including coercing artists into using the company’s promotion services and retaliating against venues that opted not to use Ticketmaster.
According to the lawsuit filed by the investors, Live Nation’s stock dropped $7.92 per share, or 7.8 percent, when the feds filed their case. Even before the lawsuit was formally filed, media reports about the investigation — including that Live Nation had “stonewalled” a Senate probe — had caused similar decreases in price.
According to settlement papers submitted on Friday, experts for the investors estimated that a best-case scenario might net them a whopping $743 million in damages at the end of the lawsuit. But their lawyers said that continuing to litigate the case also posed “significant” downside risk.
“The settlement provides a favorable, immediate and guaranteed recovery and eliminates the risk, delay, and expense of continued litigation,” plaintiff’s lawyers wrote. “While a greater recovery might be a theoretical possibility, evaluating the benefits of settlement must be tempered by recognizing that any compromise involves concessions on the part of all parties.”
Under the terms of the deal, the attorneys who represented the plaintiffs will be able to seek as much as 33 percent of the settlement, meaning up to $6.6 million. The two named plaintiffs, shareholders Brian Donley and Gene Gress, will get an extra $5,000 each.
A spokeswoman for Live Nation and an attorney for the plaintiffs did not immediately return requests for comment on the settlement.