Millions of concertgoers are potentially moving closer to class-action status in a lawsuit against Live Nation Entertainment and its subsidiary, Ticketmaster, alleging the companies exploited their dominant market position to artificially inflate ticket prices. U.S. District Judge George Wu presented the consumer motion for class certification during a hearing in a Los Angeles federal court, though he has yet to publicly announce a tentative decision.
The class status could significantly enhance the plaintiffs’ bargaining power for a settlement, as Live Nation could be liable for billions in damages if the case proceeds to trial. Under federal antitrust regulations, successful plaintiffs may receive triple the actual damages incurred.
The lawsuit, initiated nearly four years ago, aims to represent all U.S. consumers who purchased primary tickets and incurred service fees for events at prominent venues through Ticketmaster since 2010. This class could encompass millions of concertgoers, a fact underscored in the motion presented to Judge Wu.
Live Nation attorney Tim O’Mara contended that the plaintiffs did not adequately demonstrate uniform impact among all concert ticket buyers regarding the alleged anticompetitive behavior. He argued that the economic analysis presented by the plaintiffs’ experts failed to account for variances in venue sizes and locations, as well as differences in fees negotiated between Ticketmaster and the concert venues.
O’Mara cautioned that certifying the case as a class action could set a broad precedent for similar lawsuits, asserting, “You need to isolate the anticompetitive conduct. If this can be certified as a class, then any case can be certified.”
Judge Wu seemed reluctant to let the reliability of the plaintiffs’ economic model dictate the outcome of the class certification motion. He suggested that any challenges to the findings of the plaintiffs’ expert could be evaluated through pretrial motions rather than during the certification process.
Under Ninth Circuit law, plaintiffs can advance as a class if they demonstrate enough shared experiences that warrant collective treatment rather than individual assessment. This collective action could strengthen the plaintiffs’ case against the defendant, as pooled resources generally increase the chances of a favorable settlement.
Live Nation, recognized as the largest concert promoter globally, and Ticketmaster, its affiliate since 2010, have traditionally faced backlash for high ticket prices tied to the company’s market dominance. The antitrust complaint alleges that Live Nation’s financial dealings with top artists complicate the issue of pricing, leading to higher costs for consumers.
The plaintiffs assert that Live Nation coerces concert venues into exclusive, long-term contracts mandating the use of Ticketmaster for ticket sales, which they claim solidifies Ticketmaster’s control over ticket pricing in the primary market. Moreover, the suit alleges that Ticketmaster exerts similar control in the secondary market by requiring all resale transactions to go through its platform.
Judge Wu, appointed by George W. Bush, has previously rebuffed Ticketmaster’s requests to compel arbitration for ticket buyers and dismissed efforts to have the case thrown out altogether, setting the stage for potential class certification and further developments in this high-stakes legal battle.
