Legal News
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In the wake of a falling out between RBD and its ex-manager and business partner Guillermo Rosas — a split made public in January when Billboard reported that the two had parted ways — the Mexican band has shared an official statement addressing the ongoing dispute.
In a statement issued Wednesday (May 22), RBD responded to previous claims made by Rosas and his company, T6H, to People En Español that there was “no financial mismanagement” tied to the band’s ultra-successful Soy Rebelde Tour. Hitting back at that characterization, RBD members Anahí, Christopher Von Uckermann, Dulce María, Christian Chávez and Maite Perroni claim that there were in fact “significant irregularities” revealed in a forensic accounting investigation led by Critin Cooperman, alleging that nearly $1 million remains unaccounted for after T6H began receiving funds related to the tour in December 2022.
According to the official statement issued by RBD’s lawyers and shared with Billboard, T6H and Citrin Cooperman — a services firm that acted as a business manager for the tour and also conducted the financial audit — were the “only entities responsible for the tour payments.” None of RBD’s members “had access to manage the money or make payments,” the band claims.
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Furthermore, the band says, T6H has “hindered the process” by not signing “key” documents necessary for the resolution of payments and the tour, which marked RBD’s grand return to touring after splitting in 2008.
Billboard reached out to T6H for comment but did not hear back by press time.
“Given the considerable amount of money involved and the discrepancies found, all our projects are currently on hold. We have had to pause this shared dream with you, including a possible continuation of the tour,” the statement continues. “Our goal has always been to resolve these discrepancies professionally. We remain committed to cooperating with all parties involved to achieve a fair and transparent resolution. Our integrity and the trust of our fans are paramount, and we will not rest until these matters fully resolve.”
In December, RBD wrapped its massive world tour, which, as of Nov. 30, had grossed $197.1 million since launching in August. Rosas also worked with the band as a concert promoter from 2006 to 2008.
Under a new business model designed for RBD’s comeback tour, the five members and Rosas were deemed equal partners in a new joint venture. The deal had the band splitting all new revenue, including for music, with Rosas, who in 2020 helped clear the rights to the group’s catalog. He also brought Live Nation on board as the promoter for the reunion tour and CAA for global representation of the band.
Apple has launched a legal challenge against the 1.8 billion euro ($1.95 billion) fine assessed by the European Commission for breaking competition laws and unfairly favoring its own music streaming service over rivals including Spotify.
According to court records, the U.S. tech giant filed an appeal with the EU’s Luxembourg-based General Court earlier this month.
Details of what is contained in the legal action, listed as: “Apple and Apple Distribution International v Commission,” are not yet publicly available. Representatives of Apple and the European Commission did not respond to requests to comment.
Apple had previously said it would appeal the EU’s fine, which was handed down in March following a long-running investigation triggered by complaints from Swedish streaming service Spotify.
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At the time of the ruling, the European Commission’s Margrethe Vestager said Apple had “abused its dominant position” for almost a decade by restricting rival music streaming apps from informing consumers about alternative, cheaper music services available outside of the App Store.
As a result, many users paid “significantly higher prices for music streaming subscriptions” because of the high fee imposed by Apple on developers, which was then passed on to users, the commission said.
Apple has always strongly denied those claims, arguing that EU investigators had failed “to uncover any credible evidence of consumer harm.” The commission’s decision “ignores the realities of a market that is thriving, competitive, and growing fast,” the tech company said in a statement two months ago.
The nearly $2 billion fine was issued as part of an ongoing EU-wide effort to rein in the global dominance of big tech companies through large financial penalties and regulatory measures.
In March, just a few days after Apple received its penalty notice, new EU rules came into force governing how the largest online platforms operate in Europe as part of the Digital Markets Act (DMA).
The DMA requires the six tech giants designated as “gatekeepers” by the European Commission — Apple, Google parent company Alphabet, Amazon, TikTok-owner ByteDance, Meta and Microsoft — to comply with a raft of provisions, including not favoring in-house services at the expense of third-party providers.
The laws are enforceable by fines of up to 20% of total worldwide turnover (a.k.a. gross revenue) or, in extreme cases, the “last resort option” of forced divestments and the break-up of businesses.
In response, companies like Apple have been overhauling how they operate in the 27-member EU bloc, allowing European users to download rival app stores and lowering the fees charged to developers for purchases made through the App Store.
However, Apple’s plans to charge “high volume” services with over 1 million users a €0.50 ($0.54) “core technology fee” per download, per year, for using alternatives to the App Store has been heavily criticized by a number of European businesses, including Spotify and Deezer.
On March 25, the EU announced that it was investigating Apple, along with Meta and Alphabet, for potential breaches and non-compliance with the DMA’s terms.
Apple’s legal challenge against the commission’s $1.95 billion fine opens yet another battlefront with EU regulators. The tech company has previously had some success in the General Court — the European Union‘s second-highest court, which hears cases brought by companies against the commission.
In 2020, EU judges overturned a previous ruling by the commission that Apple had underpaid 13 billion euros in taxes to the Irish government. That case subsequently went to the European Court of Justice and is still slowly making its way through the legal process.
Apple’s latest court fight could be just as longwinded and take several years before any ruling is made by the General Court, which would also be open to appeal.
Beyoncé, Sony Music and others are facing a copyright lawsuit over her chart-topping hit “Break My Soul,” filed by a New Orleans group that says she sampled from a Big Easy rapper who had illegally lifted lyrics from their earlier song.
In a complaint filed Wednesday (May 22) in Louisiana federal court, members of Da Showstoppaz accuse Beyoncé (Beyoncé Knowles Carter) of infringing their 2002 song “Release A Wiggle” on “Break My Soul,” which spent two weeks atop the Billboard Hot 100 in 2022.
Rather than stealing their material directly, the group alleges that Beyoncé infringed their copyrights by legally sampling the 2014 song “Explode” by the New Orleans rapper Big Freedia. That track, they say, illegally borrowed several key lyrics from their song.
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“While Mrs. Carter … and others have received many accolades and substantial profits … Da Showstoppaz’s have received nothing—no acknowledgment, no credit, no remuneration of any kind,” the group’s attorneys wrote, also naming Big Freedia (Freddie Ross) as a defendant.
“Explode” was one of several high-profile samples on “Break My Soul,” which also heavily pulled from Robin S.‘s house song “Show Me Love.” After the release of the song, Big Freedia thanked “Queen Beyoncé” and said she had been “honored to be a part of this special moment.”
At the center of the new dispute is the phrase “release yo wiggle” and several related variants, which Da Showstoppaz call “unique phrases” that they coined in their song. They say Big Freedia — a well-known rapper in New Orleans’ bounce music scene — infringed their copyrights by using similar phrases in “Explode.”
“The infringing phrase ‘release yo’ wiggle’ and several other substantially similar phrases are featured prominently in the song and evenly spread out across Explode’s two-minute and forty-seven second runtime,” the group’s lawyers wrote. “Any reasonable person listening to ‘Release A Wiggle’ and ‘Explode’ would conclude that the songs are substantially similar.”
Such allegations could face long odds in court. Copyright law typically does not protect short, simple phrases, and a court could potentially dismiss the case on the grounds that Big Freedia was free to use such lyrics even if The Showstoppaz used them first.
But the group’s lawyers aren’t concerned, saying they “have a copyright to their unique and distinctive lyrics” that was clearly infringed by Big Freedia: “The coined term and phrase ‘release a/yo wiggle’ has now become closely synonymous with Big Freedia, thereby contributing to Big Freedia’s fame. However, Big Fredia did not compose or write the phrase, and Big Freedia never credited Da Showstoppaz as the source.”
According to the lawsuit, Da Showstoppaz first learned about Big Freedia’s song when they heard “Break My Soul.” They say they notified Beyoncé and others of the alleged infringement infringement last month, but that she has refused to take a license.
Reps for Beyoncé and Sony Music did not immediately return a request for comment on the allegations.
Elvis Presley’s granddaughter Riley Keough won a court order Wednesday blocking a looming foreclosure sale of the late singer’s historic Memphis home Graceland, after her attorneys argued that the bizarre effort to sell the home was “fraudulent.”
At a hearing in Memphis court, Chancellor JoeDae Jenkins granted Keough’s request for a preliminary injunction that will block the mysterious foreclosure proceeding – initially set for Thursday – until he can rule on her case, according to court records reviewed by Billboard.
As reported by CNN, the judge said during the hearing that Keough would likely win her arguments — and that allowing the sale of the legendary mansion to go through in the meantime would cause her so-called irreparable harm.
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“The estate is considered unique under Tennessee law, and in being unique the loss of the real estate will be considered irreparable harm,” Jenkins said in the hearing.
In a case filed in Tennessee court last week, Keough alleged that the foreclosure was triggered by phony demands from a company called Naussany Investments – an entity that allegedly claims her late mother, Lisa Marie Presley, borrowed $3.8 million and used the famed mansion as collateral.
The alleged loans are recorded in documents supplied by Naussany that feature Lisa Marie’s signature, but Keough’s lawyers say those records are “forgeries” and that she “did not in fact sign the documents.”
“These documents are fraudulent,” Keough’s attorneys write in their May 15 complaint, obtained by Billboard. “Lisa Marie Presley never borrowed money from Naussany Investments and never gave a deed of trust to Naussany Investments.”
Naussany (Naussany Investments & Private Lending LLC) could not immediately be located for comment on Wednesday’s order. An attorney for Keough also did not return a request for comment.
When Elvis died in 1977, his daughter Lisa Marie inherited his estate, including Graceland — a tourist mecca that pulls in millions of dollars a year in revenue. Until her death last year, she served as trustee of the Promenade Trust, an entity that controls the Memphis mansion. When she passed away, Keough assumed that same role and took control of the property.
According to the lawsuit, Naussany alleges it made the multi-million dollar loan to Lisa Marie in 2018 and recorded the transaction in Florida. But Keough’s lawyers say that Naussany is “a false entity created for the purpose of defrauding the Promenade Trust,” orchestrated by a man named Kurt Naussany who has sent “numerous emails seeking to collect the purported $3.8 million debt.”
Keough’s attorneys say the evidence “strongly indicates the documents are forgeries” – most notably, that the notary who allegedly signed off on the transaction has confirmed that she did not do so. “Indeed, she confirmed she has never met Lisa Marie Presley nor notarized any document for her.”
Following Wednesday’s ruling, the case will now proceed toward more detailed litigation over the Keough’s allegations, and eventually toward a final ruling.
An Earth, Wind & Fire tribute act will pay the legendary R&B group $750,000 in damages for using its trademarked name in ways that a federal judge called “deceptive and misleading.”
The payment, announced in a court filing Tuesday, will effectively end a year-long lawsuit in which the band alleged that the tribute act — “Earth, Wind & Fire Legacy Reunion” – infringed the trademark rights to the famous name by suggesting it was the real thing.
Earlier this year, the federal judge overseeing the case sided with Earth, Wind & Fire, ruling that the tribute act’s conduct had been “deceptive and misleading.” A trial had been scheduled to figure out how much Legacy Reunion would need to pay, but the two sides reached an undisclosed settlement on that question last week.
In Tuesday’s filing, the judge disclosed the total that Legacy Reunion had agreed to pay – $750,000, plus interest — a rare step following settlements, which are typically kept private. Neither side immediately returned requests for comment.
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Earth, Wind & Fire has continued to tour since founder Maurice White died in 2016, led by longtime members Philip Bailey, Ralph Johnson and White’s brother, Verdine White. The band operates under a license from an entity called Earth Wind & Fire IP, a holding company controlled by Maurice White’s sons that formally owns the rights to the name.
Last year, that company filed the current lawsuit, accusing Legacy Reunion of trying to trick consumers into thinking it was the real Earth, Wind & Fire. Though it called itself a “Reunion,” the lawsuit said the tribute band contained only a few “side musicians” who had briefly played with Earth, Wind & Fire many years ago.
“Defendants did this to benefit from the commercial magnetism and immense goodwill the public has for plaintiff’s ‘Earth, Wind & Fire’ marks and logos, thereby misleading consumers and selling more tickets at higher prices,” the group’s lawyers wrote at the time.
Tribute acts — groups that exclusively cover the music of a particular band — are legally allowed to operate, and they often adopt names that allude to the original. But they must make clear that they are only a tribute band, and they can get into legal hot water if they make it appear that they are affiliated with or endorsed by the original.
Ruling on the case last month, Judge Federico A. Moreno said the evidence pointed “overwhelmingly” in the band’s favor. In particular, the judge cited angry social media posts and emails from fans who attended the “Reunion” shows because they thought it was the original band — proof of the kind of “actual confusion” that’s crucial evidence in a trademark lawsuit.
“It is not a far cry to think that an average consumer looking for an Earth, Wind & Fire concert would believe that they could acquire that experience from either plaintiff or defendants,” the judge wrote.
Following Tuesday’s order, the only remaining issue in the case is an injuction permanently banning Legacy Reunion from infringing the name. That issue will be subject to future rulings clarifying exactly what it will cover.
Sean “Diddy” Combs has been accused of sexual assault in a new lawsuit filed by a woman who claims the hip-hop mogul sexually assaulted her in a recording studio bathroom in 2003.
According to the complaint, which was filed in U.S. District Court in New York by attorneys Michelle Caiola and Jonathan Goldhirsch, Crystal McKinney claims she met Combs at a Men’s Fashion Week dinner in Manhattan on the invite of a fashion designer she knew. While attending the dinner, during which she alleges that Combs came onto her “in a sexually suggestive manner,” she says he invited her to hang out at his recording studio.
After arriving at the studio, where McKinney says several other men were present, she claims she was given alcohol and a marijuana joint that she later came to believe was laced “with a narcotic or other intoxicating substance.” She says Combs then led her to a bathroom, where he began kissing her without her consent before shoving her head in his crotch and forcing her to perform oral sex over her protests.
McKinney, who was then working as a professional model, claims that she later “awakened in shock” to find herself in a taxi heading back to the apartment of the designer who had invited her to the dinner. At this point, she “realized that she had been sexually assaulted by Combs,” the complaint reads. The lawsuit adds that following the alleged assault, McKinney’s “modeling opportunities quickly began to dwindle and then evaporated entirely” after Combs allegedly “blackballed” her in the industry. After falling into “a tailspin of anxiety and depression,” she claims she attempted suicide in 2004 and later fell into drug and alcohol addiction to cope with the trauma of the alleged assault.
The new lawsuit was filed under the NYC Gender Motivated Violence Act, which created a two-year lookback window beginning in March 2023 that allows survivors of gender-motivated violence to sue their abusers for alleged incidents that occurred outside the statute of limitations.
Also named as defendants in the lawsuit are Combs’ label Bad Boy Records, its parent company Universal Music Group and Combs’ clothing company Sean John Clothing, all of which McKinney claims “enabled” the alleged assault by “actively maintaining and employing Combs in a position of power” despite the fact that they allegedly “knew or should have known that Combs posed a risk of sexual assault.”
McKinney is asking for damages for mental and emotional injury, distress, pain and suffering and injury to her reputation as well as punitive damages, among other relief.
Representatives for Combs, Bad Boy Entertainment, Sean John Clothing and Universal Music Group did not immediately respond to Billboard‘s requests for comment.
Tuesday’s complaint marks the sixth sexual misconduct lawsuit to have been filed against Combs over the past several months. The torrent of lawsuits was kicked off by a November 2023 complaint filed by his former girlfriend Cassie Ventura, who alleged repeated abuse by the mogul over the course of more than a decade.
Though Ventura’s lawsuit was settled just one day later, a 2016 security video published by CNN on Friday (May 17) showed Combs physically assaulting Ventura in a hotel hallway. Though Combs denied all of Ventura’s initial allegations, in the wake of the video’s release he issued an apology calling his behavior in the clip “inexcusable.” L.A. District Attorney George Gascón later released a statement saying that Combs could not be prosecuted over the assault due to the statute of limitations.
Combs has strongly denied all allegations of sexual assault made against him. On Dec. 6, he released a statement that read: “Let me be absolutely clear: I did not do any of the awful things being alleged. I will fight for my name, my family and for the truth.”
In November, Combs stepped down as chairman of his digital media company Revolt before reportedly selling his stake in the company in March. Also in March, federal agents conducted raids of Combs’ L.A. and Miami homes “in connection” with a federal sex trafficking investigation, according to CNN.
Podcast and music streaming company LiveOne is being sued for allegedly “openly and illegally operating a commercial office, business event center, professional podcast interview studio, and music recording studio” out of a 6,000-square-foot mansion in Beverly Hills, according to a complaint filed May 10 by the property’s next-door neighbors.
Entertainment attorney Michael Kibler and his wife Ann Kibler allege LiveOne has been a “nuisance” since it moved to take over the lease for the house in 2022, leading to “noise at all hours of the day and night, increased foot and car traffic associated with commercial operations, and parking overflow, from the day-to-day commercial activity at the residence,” according to the lawsuit, which was filed by Kibler’s law partner John Fowler.
The house is located in the famed Beverly Hills Flats neighborhood, which has long struggled to balance the privacy and safety needs of its wealthy residents with the hustle and bustle of West Hollywood and Beverly Hills’ glitzy Golden Triangle corridor.
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According to the complaint, the Beverly Hills home now being used by LiveOne had been privately held and occupied by a long-time owner who passed away in 2021. The property, which includes, a pool, a swimming lap lane and a guest house, was then purchased by Siamak Khakshooy and Tanaz Koshki for $6.9 million in October 2021 and rented the following December to The Revels Group, which manages artists including rapper G-Eazy.
That’s when the problems for the Kibler family began, according to the lawsuit. The Revels Group used the space as its “creative compound,” the lawsuit reads, operating music studios on the property and promoting “all-night music industry events hosted by professional DJs” on a “nightclub-quality sound system in the backyard.” After receiving multiple complaints about the house, Beverly Hills’ Code Enforcement department launched an investigation in September 2022 and ordered the company to “permanently terminate all operations,” which led to The Revels Group not renewing its lease. After The Revels Group moved out in December 2022, LiveOne moved in around March 2023.
Since taking over the property, LiveOne “has operated its music and entertainment company by engaging in recording studio activities, hosting a pre-Grammy night party on February 3, 2024, and holding other music entertainment events,” the lawsuit reads.
The Kiblers have hired private investigators to surveil the house and issue lengthy reports identifying LiveOne staffers as they enter and exit the property, even running license plate checks on cars parked near the house to determine the identities of the drivers, according to the lawsuit. Besides the occasional late-night party, the Kibler’s biggest complaint is the “large quantities of trash overflowing from the City trash and recycling bins in the alley behind The LiveOne House.”
The Kiblers are suing LiveOne and the property’s owners for violating local zoning laws, charging both with public and private nuisance, as well as infliction of emotional distress. The Kiblers are asking a judge to order LiveOne to cease all business at the house and pay a $10,000 fine for each day it operates at the house.
Billboard reached out to LiveOne for comment but did not receive a response.
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.
This week: Spotify faces a lawsuit over allegations that it “unlawfully” chose to reduce royalty payments to publishers and songwriters; Earth, Wind & Fire reaches a settlement over how much it’s owed in damages by an unauthorized tribute band; Elvis Presley’s granddaughter sues to protect Graceland from a “fraudulent” foreclosure; and much more.
THE BIG STORY: Spotify Taken To Court Over Royalties
Weeks after Billboard estimated that Spotify would pay roughly $150 million less to songwriters and publishers over the next year, the streaming giant is facing a legal battle over the move.In a lawsuit filed last week, the Mechanical Licensing Collective (MLC) claimed Spotify had “unilaterally and unlawfully” chosen to cut its royalty payments nearly in half by “erroneously recharacterizing” the nature of its streaming services to secure a lower rate.“The financial consequences of Spotify’s failure to meet its statutory obligations are enormous for songwriters and music publishers,” the MLC wrote. “If unchecked, the impact on songwriters and music publishers of Spotify’s unlawful underreporting could run into the hundreds of millions of dollars.”At issue in the lawsuit is Spotify’s recent addition of audiobooks to its premium subscription service. The streamer believes that because of the new offering, it’s now entitled to pay a discounted “bundled” royalty rate under federal law. But the MLC says Spotify’s interpretation is legally incorrect and represents a “clear breach” of its requirements under the law.This is the second lawsuit of the past six months for the MLC — an entity created by Congress in 2018 to collect royalties under the Music Modernization Act. After the MLC filed a similar case against Pandora in February, that streamer argued that the group was supposed to operate as a “neutral intermediary” and was “not authorized to play judge and jury” or pursue “legal frolics.”For the full breakdown of the new case against Spotify — including industry reactions and access to the full complaint filed in court — go read Kristin Robinson’s entire story here.
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Other top stories this week…
TRADEMARK TRIAL AVERTED – Earth, Wind & Fire reached a settlement with a tribute act that used the R&B group’s name without permission, avoiding a looming trial over how much the unauthorized group would have to pay in damages. The agreement came months after a federal judge ruled that the tribute act — “Earth, Wind & Fire Legacy Reunion” — had infringed the band’s trademarks.LIVE NATION CASE EXPLAINED – With an antitrust lawsuit against Live Nation from the U.S. Department of Justice expected soon, Billboard‘s Dave Brooks dove deep — breaking down the particulars of the looming case, explaining how it might affect Live Nation and recounting recent federal efforts to crack down on anti-competitive practices at tech giants like Google and Apple.COURTHOUSE ROCK – Elvis Presley’s granddaughter Riley Keough filed a lawsuit aimed at blocking a “fraudulent” foreclosure sale of the late singer’s historic Memphis home Graceland. Keough’s lawyers say the sale foreclosure was triggered by phony claims that her late mother, Lisa Marie Presley, borrowed $3.8 million and used Elvis’ famed mansion as collateral.UMG DROPPED FROM DIDDY CASE – Universal Music Group (UMG) and CEO Lucian Grainge were dismissed from a lawsuit claiming they “aided and abetted” Sean “Diddy” Combs in his alleged sexual abuse — a move that came after the lawyer who filed the case admitted there had been “no legal basis for the claims.” The sudden reversal came as UMG’s lawyers argued that the accusations were so “offensively false” that they planned to take the unusual step of seeking legal penalties directly against the accuser’s lawyer.SAMPLE SETTLEMENT – Kanye West reached a settlement with the estate of Donna Summer to resolve a copyright lawsuit that accused him of “shamelessly” using her 1977 hit “I Feel Love” without permission in his song “Good (Don’t Die).” The case, filed in February, claimed that West “arrogantly and unilaterally” used her music even though he had been explicitly refused a license.NAME GAMES – Members of the 1980s new wave band The Plimsouls won a legal ruling against the group’s guitarist over the trademark rights to the band’s name. The case was the music industry’s latest battle over the names of classic rock groups, including Journey, Stone Temple Pilots, Jefferson Starship, the Rascals, the Ebonys, The Commodores and The Platters.
Elvis Presley’s granddaughter, the actress Riley Keough, has filed a lawsuit aimed at blocking a looming foreclosure sale of the late singer’s historic Memphis home Graceland, calling the proceedings “fraudulent.”
In a case filed in Tennessee court last week, Keough alleged that the foreclosure was triggered by phony demands from a company called Naussany Investments – an entity that allegedly claims her late mother, Lisa Marie Presley, borrowed $3.8 million and used the famed mansion as collateral.
The alleged loans are recorded in documents supplied by Naussany that feature Lisa Marie’s signature, but Keough’s lawyers say those records are “forgeries” and that she “did not in fact sign the documents.”
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“These documents are fraudulent,” Keough’s attorneys write in their May 15 complaint, obtained by Billboard. “Lisa Marie Presley never borrowed money from Naussany Investments and never gave a deed of trust to Naussany Investments.”
The foreclosure sale for Graceland had been scheduled for Thursday, but according to court records, Keough’s attorneys won a temporary restraining order last week blocking any sale until the judge can rule on the dispute. A court hearing is set for Wednesday on Keough’s efforts to secure a longer-term injunction blocking the sale.
Naussany (Naussany Investments & Private Lending LLC) could not immediately be located for comment. An attorney for Keough declined to comment. News of the lawsuit was first reported Monday by the Memphis Commercial Appeal.
When Elvis died in 1977, his daughter Lisa Marie inherited his estate, including Graceland — a tourist mecca that pulls in millions of dollars a year in revenue. Until her death last year, she served as trustee of the Promenade Trust, an entity that controls the Memphis mansion. When she passed away, Keough assumed that same role and took control of the property.
According to the lawsuit, Naussany alleges it made the multi-million dollar loan to Lisa Marie in 2018 and recorded the transaction in Florida. But Keough’s lawyers say that Naussany is “a false entity created for the purpose of defrauding the Promenade Trust,” orchestrated by a man named Kurt Naussany who has sent “numerous emails seeking to collect the purported $3.8 million debt.”
Keough’s attorneys say the evidence “strongly indicates the documents are forgeries” – most notably, that the notary who allegedly signed off on the transaction has confirmed that she did not do so. “Indeed, she confirmed she has never met Lisa Marie Presley nor notarized any document for her.”
Officials with the Department of Justice’s Antitrust Division plan to sue Live Nation after they wrap up a two-and-a-half-year investigation into the company, according to two high-level sources with knowledge of the matter.
The lawsuit will take aim at Ticketmaster’s use of exclusive venue contracts for its ticketing services, the sources say. Last week, Live Nation officials met with attorneys from the Department of Justice to discuss the case, including DOJ Assistant Attorney Jonathan Kanter, but neither the DOJ nor Live Nation commented on the meeting’s details. There’s no clear timeline on when the DOJ plans to officially close its investigation or file suit, and the two sides could meet again to discuss the case. Both The Wall Street Journal and Politico have previously reported that the DOJ planned to sue Live Nation in published reports earlier this year.
Live Nation officials are continuing to cooperate with the investigation, company president Joe Berchtold indicated on a May 2 earnings call. Based on the issues the DOJ has raised with Live Nation, Berchtold said he believes the lawsuit is related to “specific business practices at Live Nation” and “not the legality of the Live Nation/Ticketmaster merger.”
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That’s both good and bad for Live Nation officials. On the one hand, if the merger isn’t central to the government’s case, then ending the merger and splitting the company up probably isn’t on the table — at least according to Berchtold. Alternatively, if the government believes that the company’s use of exclusive ticketing contracts with venues is monopolistic, it could propose an even harsher penalty.
That’s because politicians like Senator Amy Klobuchar (D-Minn.), who chairs the anti-trust subcommittee in the Senate, have zeroed in on Ticketmaster’s 70-80% market share of the top 100 highest-grossing theaters, arenas and stadiums in North America. Klobuchar has repeatedly said she believes Ticketmaster uses exclusive contracts to lock up market share. In contrast, Ticketmaster attorneys and industry advocates have argued before that the exclusive nature of these contracts benefits venues because it simplifies the ticket-buying process for consumers and generates important revenue for venues that they would not earn without an exclusive agreement.
DOJ officials are also expected to argue that Live Nation has illegally abused its power in the concert business to drive up ticket prices over the last decade, in part through additional fees that can add as much as 30% to ticket prices.
But officials from Ticketmaster, which Live Nation controls, have long argued that artists set their ticket prices, not Ticketmaster, and that only a small percentage of the fees collected above face value go to the ticketing company, with the vast majority of those funds going to venues to help cover the costs of a concert.
The government also bears the burden of proving why its proposed remedies — like forcing Live Nation to sell its stake in Ticketmaster — would benefit consumers.
Simply being named in an antitrust lawsuit filed by Kanter has the potential to significantly damage Live Nation reputationally and financially. A detailed lawsuit against it could galvanize the company’s critics behind a narrative that alleges the concert conglomerate acts monopolistically and abuses its power, undoing the company’s efforts in recent years to improve its image and destigmatize its business model.
A lawsuit will also likely have a negative impact on the company’s share price and serve as a major distraction for Live Nation when it would otherwise be focused on strategic expansion following its most successful fiscal year ever, with revenue up 36% from the previous year and an impressive $1.8 billion in adjusted net income.
Instead, Live Nation may face the full weight of America’s top law enforcement agency, which this year has taken on companies like Apple and Google with market capitalizations that are each 100 times larger than Live Nation’s. While Kanter’s efforts against these companies have been applauded by powerful allies including Senator Amy Klobuchar (D-Minn.), who has vowed to “make antitrust sexy again,” Kanter’s efforts so far have been unsuccessful, with the DOJ losing the bulk of the major antitrust cases it has filed. In December 2022, a judge dismissed the DOJ’s efforts to block a merger between security firms Booze Allen Hamilton and Everwatch as well as mergers between UnitedHealth Group and Change Healthcare, U.S. Sugar Corp and Imperial Sugar, Meta and Within, and Microsoft and Activision.
Kanter also lost a major ruling in the DOJ’s antitrust case against Google earlier this year when a judge struck down a request to bar the tech giant from offering up evidence that activities the government had deemed anti-competitive also had positive qualities that improved the product and generated positive consumer feedback.
“If the government can tip the scales and prevent courts from considering pro-competitive effects, the government could win every case by default,” wrote Sean Heather, a senior vp at the U.S. Chamber of Commerce, in a recent paper on the Google case.
The Google litigation, which deals with ongoing business practices at the company as opposed to a merger, could be a litmus test for a yet-to-be-filed Live Nation suit. In the Google case, the government alleges that the company controls 90% of the online search advertising market by paying out billions of dollars each year to companies like Apple and Samsung to be the default search engine on their computers and smartphones.
While Live Nation officials are confident they can prevail in the looming antitrust case, they will do so with far fewer resources than other companies hauled before the Justice Department in recent years. Live Nation’s market cap currently sits at $22 billion, whereas Google and Apple’s combined market cap is $6.7 trillion, making Live Nation one of the smallest companies in recent decades to be the subject of such a lawsuit.
Live Nation declined to comment for this story. The Department of Justice did not respond to requests for comment.