Investor Class Action Lawsuit Proposed Against Live Nation
IndustryLegal February 2, 2023 Itir Yildiz
The Law Offices of Frank R. Cruz has declared that it is investigating potential claims against the board of directors of Live Nation Entertainment, Inc. (“Live Nation” or the “Company”) (NYSE: LYV) concerning whether the board breached its fiduciary duties to shareholders, according to the release published on Business Wire January 26.
The statement on the law firm’s website points out to the U.S. Department of Justice’s opening an antitrust investigation during 2022 regarding whether Live Nation has abused its power over the multibillion-dollar live music industry.
The firm states their investigation concerns whether the Company’s board of directors breached its fiduciary duties to shareholders and/or grossly mismanaged the Company in connection with the above alleged misconduct.
The statement continues as follows:
“If you still hold Live Nation shares purchased before January, 2022 and wish to discuss this matter with us, or have any questions concerning your rights and interests with regards to this matter, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.”
The Law Offices of Frank R. Cruz’s investigation announcement came two days after last week’s Senate hearing (January 24) looking at competition concerns with Live Nation/Ticketmaster and the industry as a whole.
Consumers across the country spoke out against many of the practices they face while purchasing tickets for and attending live events, particularly in the wake of the Taylor Swift Eras Tour sales process in the fall. That pressure spurred legislators into action, leading to Tuesday’s hearing.
The hearing was a chance for the five witnesses to provide their feedback to members of the senate, and have it entered into the public record.
One of the strongest moments of the testimony came from Clyde Lawrence, a singer/songwriter from the band Lawrence, laying out the issues that artists face making their way through the entertainment business where Live Nation is the largest promoter, ticketer, and venue operator in the world.
SeatGeek CEO Jack Groetzinger also took the floor and pushed back on Live Nation Entertainment’s President and CFO Joe Berchtold’s claims that the company won its dominant position by providing the best service to its clients when he mentioned about Barclay’s Center leadership had been fearful that Live Nation would send shows to other venues in the New York market – a fear which eventually led them to switch after just one year from using SeatGeek to ticket its events (and the NBA’s Nets) back to Ticketmaster.
The latest development is a joint statement, issued by the Future of Music Coalition, Artist Rights Alliance, American Association of Independent Music, Music Workers Alliance, and Union of Musicians & Allied Workers, which asks that steps should be taken to break up LiveNation/Ticketmaster. It focuses on the industry side of the dominating nature of the Live Nation Entertainment/Ticketmaster business, and how that negatively impacts others in the space.
Last Updated on February 2, 2023 by Dave Clark