Live Nation antitrust trial resumes Monday on state claims after settlement talks break down
A Live Nation corporate office on March 9 in Beverly Hills
By Kara Scannell, CNN
(CNN) — The show will go on.
The antitrust trial involving events operator Live Nation will restart Monday after the ticketing giant failed to reach a settlement with a consortium of state attorneys general.
During a court hearing in New York on Friday, Judge Arun Subramanian said the states dropped their motion for a mistrial and the trial would pick up next week with witness testimony.
Michael Rapino, the chief executive of Live Nation, and musician Kid Rock, an outspoken critic of the ticketing industry, are on the states’ witness list.
The civil trial, which began earlier this month, was interrupted this week when the Justice Department and Live Nation, which owns Ticketmaster, announced a settlement that caught the judge and the states off guard. Tuesday, Subramanian called the top officials from both sides to court. The judge expressed exasperation and ordered the deal makers to remain at the courthouse through the week to try to work out a deal.
The Justice Department’s deal with Live Nation still requires the Subramanian’s approval. Under the terms of the deal, Live Nation agreed to allow competitors, like SeatGeek or StubHub, to offer tickets to its events, cap ticketing service fees at 15%, and divest exclusive booking agreements with 13 amphitheaters. It also includes a $280 million settlement fund for state damages claims.
More than 30 state attorneys general are also part of the case against Live Nation. The majority said they opposed the terms of the DOJ deal.
During the hearing Friday, a representative for several states said five reached settlements with Live Nation on similar terms as the DOJ settlement: Mississippi, Nebraska, Oklahoma, Arkansas and South Dakota. South Carolina and Iowa are also negotiating and may reach a deal, he said.
This week, the states brought on Jeffrey Kessler, a well-known antitrust attorney with Winston & Strawn, to co-lead the case.
Subramanian said on Monday that Kessler can introduce himself to the jury now that the Justice Department attorney, who has presented most of the evidence and discussion before the jury, has left the case.
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