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Live Nation ticket buyers sue in wake of US Justice Department case
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Live Nation ticket buyers sue in wake of US Justice Department case
May 24, 2024 8:24 AM

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.

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