Live Nation shareholders have begun legal proceedings against the company in connection with last month’s New York Times story that suggested it is being investigated by the Department of Justice.
The New York-based Klein Law Firm has filed a class action complaint in a California court on behalf of shareholders concerned the company violated federal securities laws.
In April it was reported the DOJ is investigating whether certain of Live Nation’s business practices are in violation of a consent decree negotiated in connection with the approval of Live Nation’s 2010 merger with Ticketmaster.
The article reported that officials at the DOJ “have been reviewing complaints that Live Nation…has used its control over concert tours to pressure venues into contracting with its subsidiary, Ticketmaster.”
The class action complaint alleges that throughout the class period, between February 2017 and March 2018, Live Nation representatives made materially false and/or misleading statements and/or failed to disclose that the company failed to abide by the terms of the consent decree.
Live Nation’s share price fell by more than 10 per cent following the New York Times expose in early April, however it has since recovered. At the time Ticketmaster president Jared Smith denied that Live Nation and Ticketmaster used anti-competitive practices.
“It is absolutely against Live Nation and Ticketmaster policy to threaten venues that they won’t get any Live Nation shows if they don’t use Ticketmaster,” Smith added.
Last month shareholder Kathryn A. Poser filed a complaint against Live Nation in US District Court for the Central District of California, according to Legal NewsLine. The complaint names the company as well as executives Michael Rapino, Joe Berchtold and Jared Smith and alleges violations of the Securities Exchange Act.
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