May 24 (Reuters) - Live Nation and its Ticketmaster unit
have been hit with the first in a likely wave of new consumer
antitrust lawsuits after the U.S. government and states sued to
break up the two companies on Thursday.
The first consumer class-action lawsuit to piggyback on the
government cases was filed later on Thursday in Manhattan
federal court, seeking $5 billion in damages on behalf of
potentially millions of ticket purchasers.
The cases accuse Live Nation of exerting monopoly control
over the live events industry, threatening venues that work with
rivals and boxing out competitors.
Consumer cases related to U.S. or state attorneys general
lawsuits can pile up quickly and put added legal pressure on
companies.
Lawyers for the class action plaintiffs at Robbins
Geller Rudman & Dowd and Israel David did not immediately
respond to requests for comment.
Live Nation on Thursday called the government lawsuit
"baseless" and said there was "more competition than ever" in
the live events market.
Lawyers who reviewed the government complaint said Live
Nation could base its defense partly on the Justice Department's
decision to sign off on Live Nation's Ticketmaster acquisition
more than a decade ago.
Crowell & Moring's Eric Enson, an antitrust lawyer who is
not involved in the lawsuit, said the government's case raised
thorny "legal and factual questions about whether a breakup is a
legally permissible remedy."
The case might resonate with consumers who have long
complained about ticket prices, he said, "but proving antitrust
cases to juries can be difficult."
However, antitrust legal scholar Rebecca Allensworth of
Vanderbilt University said while the public's opinion of Live
Nation is legally unimportant, "appearances matter in cases,
maybe especially when they are decided by juries."
The Justice Department said the prior case involved a
different antitrust law and that Live Nation had since shown
"more expansive forms" of anticompetitive conduct.