Live Nation Denies Wrongdoing but Agrees to $20M Shareholder Settlement

Entertainment powerhouse Live Nation has agreed to a $20 million settlement to resolve a shareholder lawsuit that accused the company of misleading investors regarding industry competition and compliance with antitrust laws. The proposed class action settlement, filed in federal court in Riverside, California, on Friday, is subject to judicial approval, according to Reuters.

According to the lawsuit, filed in August 2023, Live Nation allegedly violated U.S. securities laws by failing to disclose critical regulatory risks it was facing, including cooperation with government investigations. Shareholders contended that the company’s growth was driven by anti-competitive business tactics, such as retaliatory actions against entities that chose not to work with its subsidiary, Ticketmaster.

Per a court filing, Live Nation denied any wrongdoing but stated that it agreed to the settlement “solely to eliminate the uncertainty, burden, and expense of further protracted litigation.” Attorneys representing the shareholders have described the settlement as “fair, reasonable, and adequate,” emphasizing that it resulted from rigorous litigation and extensive negotiations, per Reuters.

Read more: Judge Denies Live Nation’s Motion to Dismiss Antitrust Lawsuit

The settlement amount represents approximately 3% of the maximum estimated damages of $743 million, a percentage the plaintiffs’ attorneys argue is within the range of other securities class action settlements approved by courts. The legal team intends to request that U.S. District Judge Kenly Kiya Kato allocate up to 33.3% of the settlement fund—about $6.7 million—toward legal fees.

A preliminary hearing for the settlement’s approval is scheduled for April 24.

Live Nation remains entangled in additional legal challenges. The company is currently defending itself in a consumer antitrust lawsuit in federal court in Los Angeles, where it faces allegations of inflating ticket prices. It is also contending with related claims from the U.S. Justice Department and several states in federal court in Manhattan. Live Nation has denied the allegations in these ongoing cases.

The case is titled Brian Donley et al v. Live Nation Entertainment, filed in the U.S. District Court for the Central District of California under case number 2:23-cv-06343-KK-AS.

Source: Reuters