Live Nation faces class action lawsuit after Justice Department investigation

Live Nation now faces a class action lawsuit seeking damages following a previous lawsuit announced by the Department of Justice this week.

The law firms Robbins Geller Rudman Dowd and Israel David filed their lawsuit late Thursday in Manhattan federal court, after the Justice Department’s investigation into Live Nation became public and hours after Attorney General Merrick Garland confirmed in a press conference that the department was suing the company. The lawyers are seeking $5 million in damages for former Ticketmaster customers.

This comes more than a decade after Ticketmaster paid each of its customers up to $25 in credit toward future purchases as part of a 2011 class-action lawsuit. In 2003, the company faced allegations of overcharging its customers and chose to settle rather than take the matter to court.

The Washington Examiner has asked the law firms involved for a statement.

Now, Live Nation is accused of violating Section 2 of the Sherman Act by buying up rival promoters and forcing venues and artists alike into exclusionary contracts that in some cases last up to 10 years. Garland claimed the company controls 80% of ticket sales to major concert venues, has contracts with 400 entertainers and owns or controls 60% of the amphitheaters. As such, Garland said, “It’s time to break this up.”

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Live Nation referred in a statement to the Washington ExaminerThe company said the lawsuit was merely a “short-term PR victory for the Department of Justice,” forgetting that the Obama administration had approved Live Nation’s takeover of Ticketmaster.

Its vice president, Dan Wall, warned that the lawsuit would not lower prices or fees, as prices are set by artists and fees by venues. He claimed that Ticketmaster’s market share has declined since 2010, proving that the company does not have a monopoly.