They are pursuing more extensive adjustments and compensations than what the DOJ agreement achieved.
They are pursuing more extensive adjustments and compensations than what the DOJ agreement achieved.
The Live Nation-Ticketmaster case is back in session. Numerous states are anticipated to proceed with their allegations against the company’s purported concert industry monopoly starting on Monday, after a short hearing on Friday.
The Justice Department and several states have approved agreements with the company, but most of the 40 state and district attorney general plaintiffs — for the time being — are persisting with their legal battle. The states that are pushing ahead retracted their request for a mistrial, filed subsequent to the DOJ’s announcement of its settlement in court on Monday and arrived with new external counsel to guide their trial team in the absence of federal lawyers. The judge also stated that jurors will have access to internal communications between Live Nation staff who boasted about how they “gouge” customers, overruling the company’s objections.
During a Friday hearing lasting under an hour, Judge Arun Subramanian — noticeably more upbeat than previously when he chastised lawyers for failing to notify him of an imminent settlement — navigated trial logistics and issued directives regarding exhibits. To facilitate the transition of the case, the now-retired DOJ trial team continued to work on transferring crucial information that the states would require at trial, as co-lead attorney Jonathan Hatch mentioned. However, some information remains in the DOJ database that hasn’t yet been transferred, he added. At the judge’s request, the DOJ committed to ensuring access continued until the states and their legal advisors acquired everything they required.
Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, and South Dakota have either endorsed an agreement akin to the DOJ’s with Live Nation or are nearing such an agreement. South Carolina is still negotiating with the company and may proceed with litigation unless the state reaches an accord on its financial demands beforehand. An attorney representing these states stated that South Carolina had reached a preliminary agreement on updated injunctive terms of the settlement, although the specifics remain unclear. This leaves over 30 state AGs still engaged in the litigation unless changes occur before Monday.
The trial is set to recommence with the testimony of AEG COO Jay Marciano, who was the last individual interrogated by a DOJ trial lawyer in this case. Marciano had only partially completed his testimony when court adjourned, so the states will likely need to reacquaint the jurors with the details, following introductions from their new trial team. AEG operates as a competitor to Live Nation-Ticketmaster, functioning as a similarly integrated ticketing and live events promotion enterprise.
The judge also permitted various exhibits consisting of Slack messages between Live Nation employees to be presented to the jury, after the company attempted to exclude them. These messages surfaced this week after the judge unsealed them in response to requests from multiple media outlets.
The 2022 messages included two former regional directors for ticketing at the company’s amphitheatres bragging about how they “gouge” customers with additional fees, such as for parking or VIP entry, derogatorily referring to customers as “stupid” and asserting that Live Nation was “robbing them blind.” Live Nation representative Emily Wofford characterized the conversation as one between a “junior staffer and a friend” and stated it “absolutely does not reflect our principles or our operations.” In a statement opposing the motion to exclude the messages, however, the plaintiffs argue these “junior” employees now occupy significant roles within the company: one is the head of ticketing for the sector of Live Nation handling its amphitheatres, and the other serves as a senior director of ticketing for Live Nation’s Capital Region.
“Because this was a private Slack message, management became aware of this issue at the same time as the public, and will investigate it promptly,” Wofford mentioned in a statement. “Our business thrives when fans have excellent experiences, which is why we’ve set a cap on amphitheater venue fees at 15% and have invested $1 billion over the last 18 months into U.S. venues and amenities for fans.”
Live Nation aimed to prevent these exhibits from being displayed to the jury, with its attorneys contending that they were merely “informal Slack messages” lacking pertinence to the case. Government attorneys countered that the messages represent “candid, internal communications” which counter the company’s assertion that it invests in amphitheaters to provide fans and artists with an excellent selection for concert viewing. The judge concurred that Live Nation had “opened the door” to this type of evidence by referencing the quality of fan experiences at its venues in its opening remarks.
Regardless, the proceedings will resume starting Monday morning.
