Live Nation Entertainment, Inc.
- Company Name
- Live Nation Entertainment, Inc.
- Stock Symbol
- Class Period
- February 23, 2017 to March 30, 2018
- Motion Deadline
- June 17, 2018
- Central District of California
The complaint charges Live Nation and certain of its officers with violations of the Securities Exchange Act of 1934. Live Nation produces live concerts and sells tickets to those events over the internet. Live Nation owns and operates over 195 venues throughout the world and significantly expanded its ticketing services with the acquisition of Ticketmaster Entertainment in 2010.
In connection with the acquisition of Ticketmaster, Live Nation agreed to the terms of an antitrust consent decree with the U.S. Department of Justice (the “Consent Decree”), which contained specific rules to prevent the Company from monopolizing live music promotion and ticketing.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, defendants failed to disclose that, because the Company lacked adequate internal controls, it had failed to abide by the terms of the Consent Decree. As a result of defendants’ false statements and/or omissions, the price of Live Nation common stock was artificially inflated to a high of $48.59 per share during the Class Period.
Then on April 1, 2018, after the market closed, The New York Times reported that U.S. Department of Justice officials were looking into “serious accusations” against Live Nation regarding possible antitrust violations. According to the article, the officials were “reviewing complaints that Live Nation, which manages 500 artists, including U2 and Miley Cyrus, has used its control over concert tours to pressure venues into contracting with its subsidiary, Ticketmaster. The company’s chief competitor, AEG, has told the officials that venues it manages . . . were told they would lose valuable shows if Ticketmaster was not used as a vendor, a possible violation of antitrust law.” On this news, the price of Live Nation stock fell $3.97 per share, or over 9%, on April 2, 2018, and declined another 4% the following day to close at $36.61 per share on April 3, 2018.