Multiple law firms have announced investigations of Live Nation with the potential for lawsuits to follow, looking to draw interest from shareholders who feel the entertainment giant has violated securities laws. The news comes directly on the heels of news that the Department of Justice may file an anti-trust lawsuit against the corporate giant as early as the end of 2023, which broke late in the day on Friday.
At least three law firms have announced investigations and begun soliciting information from Live Nation shareholders (NYSE: LYV) this week. All are centered around the sharp drop that company stock saw in the wake of the POLITICO report detailing the potential for anti-trust litigation against the company.
Howard G. Smith, Glancy Prongay & Murray LLP, and Frank R. Cruz have all posted similar notices in hopes of impacted investors reaching out:
On July 28, 2023, Politico reported that the Department of Justice (“DOJ”) “could file an antitrust lawsuit against concert promoter Live Nation Entertainment and its subsidiary Ticketmaster by the end of the year, according to three people with knowledge of the matter.” Politico further reported that the DOJ complaint is expected to allege that “the entertainment giant is abusing its power over the live music industry.”
On this news, Live Nation’s stock price fell $7.60, or 7.8%, to close at $89.33 per share on July 28, 2023, thereby injuring investors.
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Prior to Friday’s report, Live Nation stock had been steadily climbing since May, bolstered by record-shattering earnings fueled by price-surge tactics and overall market dominance for the California corporation. It had reached a high of close to $100/share before the sudden drop following the story break, and has remained stagnant upon markets reopening for the week, standing at just below $86/share as of Wednesday afternoon.
Citing sources with knowledge of the ongoing Department of Justice investigation into the company and its practices, the DOJ is “aiming to file a lawsuit as soon as this fall that claims the entertainment giant is abusing its power over the live music industry,” according to the report. “A case would add to the embattled company’s myriad policy and legal battles, and if successful, could potentially lead to a breakup of the company.”
Live Nation Entertainment has consistently denied allegations of wrongdoing, and its executives have publicly expressed doubt that any such lawsuit would be filed any time soon.
“We’re in regular contact with the DOJ, and they haven’t told us they think we’re doing anything illegal or asked us to address any concerns,” Senior VP and company antitrust defense czar Dan Wall told Billboard. “It would be highly irregular for the DOJ to file without that notice and a lot of dialogue afterwards. However, if they do file we are prepared to defend ourselves.”
