On Wednesday, shares of Live Nation Entertainment Inc fell in after-hours trading following reports that the Department of Justice plans to sue the company for alleged antitrust violations by Ticketmaster and is seeking to split it from its parent company.
According to Bloomberg, citing insiders, the U.S. Department of Justice and several states are preparing a lawsuit that could be filed as early as Thursday in the Southern District of New York.
Following the report, Live Nation's stock once fell by 9.3% to $92, although it later recovered somewhat.
The lawsuit is expected to allege multiple antitrust violations by Ticketmaster, claiming it has excessive control over concert ticket sales. The suit will seek remedies to address these issues, primarily by splitting Live Nation and Ticketmaster.
As America's largest concert promoter, Live Nation merged with Ticketmaster in 2010. The deal was approved on the assumption that Live Nation would not discriminate against concert venues that chose not to use Ticketmaster.
However, multiple investigations have shown that Live Nation repeatedly violated this agreement, appearing to monopolize ticket sales for major concerts, causing dissatisfaction among both performers and consumers.
In 2022, Ticketmaster faced widespread scrutiny for its poor handling of ticket demand for pop star Taylor Swift's "Eras" tour. Numerous fans sued Ticketmaster and Live Nation after the event, alleging fraud and price manipulation.
The administration of President Joe Biden also launched a new investigation into the company in 2022.
