Federal Judge Pushes States to Settle Ticketmaster Case, but Deal Unlikely

A federal judge in New York is encouraging more than two dozen states to resolve their antitrust lawsuit against Ticketmaster and Live Nation this week. However, attorneys say reaching an agreement by Friday is highly unlikely after the Justice Department already settled separately.

A federal judge in Manhattan pressed more than two dozen states on Tuesday to resolve their antitrust lawsuit against Ticketmaster and Live Nation Entertainment by week’s end, following the Justice Department’s separate settlement that removed federal prosecutors from the ongoing trial.

During a court hearing, Dan Wall, an attorney representing Live Nation Entertainment, informed Judge Arun Subramanian that the likelihood of all remaining states agreeing to settle their claims by Friday was essentially nonexistent.

Wall explained his pessimistic outlook stemmed from recent negotiations between the entertainment conglomerate and state officials over the previous week. He noted that different states are seeking varying forms of relief in their cases.

“There are too many parties,” Wall explained to the court. “We want to stick the landing here. Get it down. And we won’t stick the landing by Friday.”

Wall later emphasized his position, stating: “There is zero chance we get this done by Friday.”

Judge Subramanian responded with humor, remarking: “Not with that attitude.”

Despite the pessimistic forecast, the judge convinced attorneys from both sides to conduct negotiations within the Manhattan federal courthouse throughout the week. He wants to assess their progress before determining whether to approve the states’ mistrial motion and schedule a new trial, or continue with proceedings that began last week.

“Right now you should be focused on can we make a deal,” the judge instructed, offering conference rooms throughout the building for their discussions. He even volunteered his personal robing room as workspace, adding: “I want to see if we can get a deal done here.”

Live Nation’s president and CEO Michael Rapino was present for Tuesday’s courthouse discussions.

The Justice Department announced Monday that it had resolved its antitrust case against Ticketmaster, characterizing the agreement as a consumer victory that would dismantle an unlawful monopoly controlling live entertainment across America.

During the trial proceedings, government attorneys and representatives from 39 states plus the District of Columbia argued that Live Nation and Ticketmaster were eliminating competition and inflating ticket prices for consumers. They alleged the companies used intimidation, retaliation and other aggressive strategies to “suffocate the competition” by dominating nearly every sector of the entertainment industry, from concert promotion to ticket sales. The defendants maintained that performers, sports organizations and venues determine pricing and sales methods.

State officials immediately criticized the Justice Department’s settlement announcement. North Carolina Attorney General Jeff Jackson characterized it as “a terrible deal.”

Senator Amy Klobuchar, a Minnesota Democrat who serves on the Senate Judiciary Subcommittee on Privacy, Technology and the Law, said Monday the new agreement resembled previous Justice Department deals that failed to stop Live Nation’s monopolistic behavior.

Klobuchar commended states for rejecting the deal and expressed concern that it was revealed one month after the Justice Department’s antitrust division leader was removed from office.

Court filings show Live Nation committed to allowing up to half of all tickets at amphitheaters under its ownership, operation or control to be distributed through alternative ticketing platforms.

The company also agreed to limit service charges at those venues to 15% and sell its ownership or relinquish control of 13 amphitheaters, including facilities in Milwaukee, Cincinnati, Syracuse, New York, and Austin, Texas. Live Nation will establish a $280 million settlement fund to resolve claims or cover civil penalties for participating states.

However, no funds will be distributed unless states agree to settle. A Justice Department spokesperson said Monday that at least 10 states had committed to joining the federal settlement.

State attorneys indicate that more than two dozen states remain opposed to the proposed agreement.