Millions of consumers who purchased concert tickets through Ticketmaster may soon be allowed to proceed as a class in an antitrust lawsuit against Live Nation Entertainment, potentially setting the stage for significant financial repercussions for the ticketing giant. U.S. District Judge George Wu is currently reviewing a motion for class certification after a recent hearing in Los Angeles federal court. His tentative disposition remains undisclosed; however, the discussions during the hearing hint at a possible approval of the motion.
If certified as a class, plaintiffs will have increased bargaining power in negotiations for a settlement, particularly given the billions in potential damages that Live Nation could face if the case advances to jury trial. Under the federal antitrust laws, plaintiffs are allowed to triple their actual damages upon a favorable verdict.
The named plaintiffs, who initiated the lawsuit nearly four years ago, aim to represent all U.S. consumers who bought primary tickets through Ticketmaster since 2010, along with fees associated with ticketing services for events at major venues. This could encompass millions of ticket buyers.
Tim O’Mara, the attorney representing Live Nation and Ticketmaster, contended that the plaintiffs had not demonstrated that all ticket purchasers were equally affected by the alleged monopolistic actions of the companies. He argued that the economic analysis presented by the plaintiffs’ expert did not account for variations in the magnitude and location of concert venues and the specific fees negotiated with each.
“You need to isolate the anticompetitive conduct,” O’Mara remarked, asserting that a class certification would set a precedent allowing almost any case to be certified. However, Judge Wu appeared reluctant to use the reliability of the plaintiffs’ economic model as a key determining factor at this stage of the proceedings. He suggested that any challenges to the findings by the plaintiffs’ expert might be best addressed in a pretrial motion.
Kevin Teruya, one of the attorneys representing the plaintiffs, reinforced this point by noting that, according to Ninth Circuit law, a judge must consider an expert’s analysis unless there are significant deficiencies, which he argued were not apparent in this case.
Typically, the legal framework allows plaintiffs to pursue cases as a class if the individuals have been similarly affected, consolidating their resources and enhancing their chances of achieving a favorable outcome against a defendant who might be more hesitant to settle for a smaller amount.
Live Nation, the dominant concert promoter for larger venues, and Ticketmaster, acquired in 2010, have been long criticized by fans for high ticket prices attributed to Ticketmaster’s control of the market. Plaintiffs argue that Live Nation compensates major artists generously for tours, recovering those expenses by enforcing exclusive contracts with venues that mandate the use of Ticketmaster for ticket sales. This results in Ticketmaster’s dominance in the market, enabling the company to impose excessive fees for primary ticket sales. Moreover, they assert that consumers and ticket brokers wishing to resell tickets must also utilize Ticketmaster, given its substantial authority over the secondary ticket market.
In an earlier ruling, Judge Wu denied Ticketmaster’s request to compel ticket buyers into arbitration and previously rejected the company’s motion to dismiss the case altogether, indicating a willingness to hear the arguments put forth by the plaintiffs.
