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Consumers suing Live Nation over ticket prices won
an opportunity this week to probe the relationships between the
entertainment giant, its law firm Latham & Watkins and a dispute
resolution company whose arbitration rules are a central
sticking point in the case.
U.S. District Judge Arun Subramanian in a Monday order said the
ticket buyers could collect evidence about arbitration firm New
Era and its work with Live Nation and Latham, complicating - or
at least delaying - Live Nation's effort to push the proposed
class action out of court and into private arbitration.
The lawsuit accuses Live Nation of illegally monopolizing
the ticketing services market and overcharging millions of
ticket buyers. The consumer litigation came after a related
lawsuit by the U.S. Justice Department and a group of U.S.
states.
Live Nation, which has denied any wrongdoing, asked the New York
judge in November to rule that the plaintiffs were required to
arbitrate their claims based on provisions of their ticket
purchases, marking the latest clash over mass arbitrations as
defendants fight to limit their exposure to costly class
actions.
In their bid to keep the case in court, the plaintiffs'
lawyers at Robbins Geller said they should be allowed "limited
discovery" into Live Nation's arbitration practices.
"New Era, working with both the law firm of Latham & Watkins LLP
and defendants here, was designed to partner with corporations
in an effort to limit class exposure," Robbins Geller's David
Mitchell told the court in December.
Live Nation, Latham and attorneys at Robbins Geller did not
immediately respond to requests for comment.
New Era, which is not a defendant, said in a statement that
it has no relationship with Latham.
"Our only relationship with Live Nation is that of a neutral
dispute resolution service provider and one of our many
customers," New Era said. The company said questions about its
ties to Live Nation and Latham "were fully explored and
dismissed" in a consumer lawsuit against Live Nation in
California.
Robbins Geller cited the separate California ticket-pricing
case as part of its discovery request in the New York
litigation.
U.S. District Judge George Wu in Los Angeles ruled in 2023 that
Live Nation could not force the California case into arbitration
and must face a class action. The decision did not hinge on how
New Era's rules were developed, but the court said there
appeared to be "a remarkable degree of coordination between
Latham and New Era in terms of their interpretation and the
evolution of New Era's Rules."
Still, Wu said it was not clear to him that Latham helped to
craft or modify New Era's rules.
The U.S. Court of Appeals for the 9th Circuit last year upheld
the trial judge's order. Live Nation is challenging the ruling
in the U.S. Supreme Court.
In a filing last year in the New York case, Live Nation
called the 9th Circuit's arbitration decision "irrelevant" to
the litigation in New York.
New Era amended its rules to address issues raised in the
litigation in California, Live Nation told the New York court.
The new rules were in place at the time that the New York case
was filed, Live Nation said.
Subramanian's order said the sides will get 90 days for
discovery and then he will consider how the information may
affect Live Nation's request for arbitration.
-- Law firms Susman Godfrey and Lieff Cabraser said they would
ask for up to 25% in legal fees, or $375 million, from their
blockbuster $1.5 billion settlement with artificial intelligence
startup Anthropic.
In court papers, the law firms, representing a class of
thousands of authors, called the settlement the largest publicly
reported copyright recovery in history. Anthropic did not admit
any liability.
A 25% fee award is the benchmark for federal courts that
make up the region covered by the 9th Circuit, the authors'
attorneys told U.S. District Judge William Alsup.
Attorneys at Susman Godfrey and Lieff Cabraser did not
immediately respond to requests for comment, nor did a
spokesperson for Anthropic.
-- A U.S. judge in Wisconsin last week awarded law firm
Kellogg Hansen more than $185 million in legal fees as part of a
$630 million antitrust class action settlement against
automotive tech giant CDK Global, finding that the firm's
initial request for $205 million "excessive."
Kellogg Hansen had defended its earlier request, amounting to
33% of the settlement fund. The firm said its fee was justified
based on the risk and complexity of the case and the deal's
value.
Lawyers for Kellogg Hansen did not immediately respond to a
request for comment.
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