Live Nation Entertainment (LYV.N) has reached a $20 million settlement agreement to resolve a shareholder lawsuit accusing the company of misleading investors about industry competition and its compliance with antitrust regulations, which allegedly inflated its stock price.
The proposed settlement, filed in federal court in Riverside, California on Friday, is subject to court approval. It comes after shareholders filed a class action lawsuit against Live Nation in August 2023, claiming the company violated U.S. securities laws by withholding key information regarding regulatory risks and its involvement in government investigations.
The lawsuit alleged that Live Nation’s anti-competitive business practices, particularly retaliating against companies that refused to work with its subsidiary Ticketmaster, were central to the company’s business growth. Live Nation denied any wrongdoing but agreed to settle “solely to eliminate the uncertainty, burden, and expense of further protracted litigation.”
Lawyers for the plaintiffs, representing thousands of shareholders, called the settlement “fair, reasonable, and adequate.” They noted that the settlement would recover approximately 3% of the estimated damages of $743 million, a figure consistent with other securities class action settlements.
Attorneys are seeking up to $6.7 million in legal fees, roughly 33.3% of the settlement fund. A preliminary approval hearing is set for April 24.
In addition to this lawsuit, Live Nation is currently defending itself against a separate antitrust lawsuit in Los Angeles, alleging that the company and Ticketmaster charged excessive ticket prices. The company is also facing related claims from the U.S. Justice Department and several states in Manhattan, all of which it denies.
The case is Brian Donley et al v. Live Nation Entertainment, U.S. District Court for the Central District of California, No. 2:23-cv-06343-KK-AS.
Related topics:
