Judge scolds Live Nation and Justice Department for secret settlement talks

By Kara Scannell, CNN

(CNN) — A federal judge scolded attorneys for the Justice Department and Live Nation for secretly negotiating a settlement to resolve allegations the ticket giant operated as a monopoly while the trial was underway.

Judge Arun Subramanian called the head of the Justice Department’s antitrust division, Omar Assefi, and Live Nation’s chief executive, Michael Rapino, into court Tuesday to answer questions after he was blindsided by the deal.

On Monday the Justice Department and Live Nation, which owns Ticketmaster, announced they reached a settlement they said will benefit consumers by giving them more options and lowering prices.

More than 30 state attorneys general are also part of the case against Live Nation, but said in court filings they were only given one day to decide whether to join the settlement. As of Tuesday, most of them had not signed onto the deal, raising questions about whether the trial would proceed. Some states have asked for a mistrial and at least 60 days to recast their case.

The judge said he was not ruling on the motion for a mistrial and admonished the states saying that they should have been prepared for the possibility of a deal after they learned at the end of January that preliminary settlement talks were underway between the Justice Department and Live Nation.

“From all sides the parties conduct here strains the bounds of responsible conduct and is inconsistent” with traditions and principles in this courthouse, Subramanian said.

The judge ordered Assefi, Rapino and lawyers for the state settlement committee to remain in the courthouse to try to see if they could strike a deal this week. The trial has been put on hold until Monday.

Secret settlement talks

The judge said he learned that Live Nation and DOJ were close to a settlement the weekend before the antitrust trial started on March 2.

“Nevertheless neither the United States nor Live Nation told the court about that imminent deal before trial commenced. Instead, both parties allowed a jury to be selected. We spent a whole day here. We swore them in. It was only at that point that the court was informed that there was the potential for the settlement,” the judge said to a courtroom packed with attorneys.

He said the Justice Department and Live Nation signed a term sheet last Thursday outlining the parameter of the settlement but he didn’t learn about it until 8 p.m. on Sunday night – while he was still fielding questions about motions and exhibits from the trial team.

“Parties were acting as if we were going into trial on Monday when the leadership of the United States and the leadership of Live Nation were fully aware they had a signed term sheet. Again, this is hard to understand,” the judge said.

He added it is “mindboggling” that Assefi’s deputy was unaware that a term sheet had been signed last Thursday. The Justice Department continued to call witnesses ending the trial day Friday with one expert on the stand.

Lawyers for the states accused the Justice Department of secretly negotiating with Live Nation.

“When the Plaintiff States learned of settlement negotiations via media coverage, they repeatedly contacted both the DOJ and Defendants to request information about any proposed settlement terms. Both parties declined and the Plaintiff States remained wholly in the dark until the afternoon of March 3, 2026,” the states wrote in a court filing.

“Had Defendants chosen to meaningfully engage the Proceeding Plaintiff States in settlement negotiations, the Proceeding Plaintiff States could have tried to negotiate a settlement that would be adequate to address their competitive concerns. The decision to continue with the case or settle with Defendants is not a simple thumbs or thumbs down vote,” lawyers for the states wrote.

The judge said he was requiring the top officials to stay at the courthouse. Addressing Rapino directly the judge noted that as a skilled negotiator Rapino knew deals can be reached when the parties are focused.

“That’s 90% of the ball game,” the judge told him.

Assefi and Rapino both agreed that they were bound by the settlement they reached and would not come back saying it had fallen apart.

“If I don’t approve it that’s one thing, but you understand you’re bound to this deal,” the judge told them.

Subramanian told the parties they could have access to the courtroom and other rooms to try to finalize a deal involving the states. If no deal is reached by the end of the week, they will discuss next steps in court.

Live Nation’s top lawyer, Dan Wall, told the judge there is zero chance of reaching a settlement this week.

“It’s too hard. There are too many parties,” Wall said. “We’ve gotten some glimpses in this process of what some states want, and it’s not what other states want. It’s not just about the money. It’s about the terms. We want to stick the landing here, and we won’t stick the landing between now and Friday — there’s just no chance because of the complexity.”

The judge replied, “Not with that attitude.”

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