Live Nation Seeks Dismissal of Antitrust Lawsuit Over Ticketmaster Practices

Live Nation Entertainment Inc. (NYSE:LYV) has filed a motion to dismiss claims from several U.S. states that accuse the company of harming concertgoers by restricting competition through its ticketing subsidiary Ticketmaster.

The lawsuit, filed in May by the U.S. Department of Justice and a group of states, seeks to break up the Live Nation and Ticketmaster integration, alleging that their practices inflated ticket prices and adversely affected artists. The number of states involved in the lawsuit has grown to 39, plus the District of Columbia, with two-thirds of them seeking treble damages for residents who purchased tickets.

Live Nation’s argument for dismissal centers on the claim that the states’ claims are not directly related to consumers or the ticket fees they paid. The company believes that the states’ theory that venues will lower ticket prices when costs fall is flawed, and that venues are more likely to increase profits rather than pass on cost savings to ticket buyers.

Additionally, Live Nation is asking U.S. District Judge Arun Subramanian to dismiss claims that it forces artists to use its promotional services to book venues it owns. The company argues that it has no legal obligation to allow competitors to rent its amphitheaters.

The case is unfolding in Manhattan, where a judge will consider Live Nation’s request to have the claims dismissed from the lawsuit. The outcome of the lawsuit could have significant ramifications for the live event promotion and ticket sales industry.