A federal judge in Manhattan urged more than two dozen states on Tuesday to negotiate a settlement in their antitrust case against Live Nation Entertainment and Ticketmaster, a day after the Justice Department announced it had settled and dropped out of the trial. A lawyer for Live Nation told Judge Arun Subramanian the chance all states would agree to terms by Friday was “about zero.”
The standoff leaves the landmark antitrust case in limbo after trial evidence began last week. The Justice Department announced a settlement Monday that at least 10 states agreed to join, but over two dozen states remain outside the deal, forcing Subramanian to press in-court negotiations as an alternative to a mistrial or a fresh trial start.
NEW YORK — A federal judge in Manhattan urged more than two dozen states on Tuesday to use courthouse conference rooms — and even his own robing room — to negotiate a settlement in their antitrust case against Live Nation Entertainment and Ticketmaster, a day after the Justice Department settled its claims and dropped out of the ongoing trial.
Judge Arun Subramanian told lawyers at a hearing that he wanted to see whether a deal could be reached before he decided whether to grant a mistrial or resume the trial next Monday, when evidence had been set to continue.
“Right now you should be focused on can we make a deal,” Subramanian said.
But Dan Wall, a lawyer for Live Nation, told the judge the chances of all states settling by Friday were “about zero.”
“There are too many parties,” Wall said. “We want to stick the landing here. Get it down. And we won’t stick the landing by Friday.”
When Wall reiterated, “There is zero chance we get this done by Friday,” Subramanian quipped: “Not with that attitude.”
Michael Rapino, president and chief executive of Live Nation, attended the courthouse talks Tuesday.
What the DOJ settlement includes
On Monday, the Justice Department described its settlement as a victory for consumers that would end what it called an illegal monopoly over live events. At least 10 states agreed to join the United States in settling the case, according to a Justice Department official.
Under the terms, Live Nation agreed to allow up to 50% of all tickets sold at amphitheaters it owns, operates, or controls to be sold through any ticketing marketplace. The company also agreed to cap its service fees at those amphitheaters at 15% and to divest ownership or control of 13 amphitheaters, including venues in Milwaukee, Cincinnati, Syracuse, New York, and Austin, Texas.
Live Nation also agreed to create a $280 million fund to settle claims or pay civil penalties to states — but none of that money would be paid out if no states settle.
States push back
More than two dozen states have not agreed to the deal, according to their lawyers. North Carolina Attorney General Jeff Jackson called the terms “a terrible deal.”
U.S. Sen. Amy Klobuchar, a Minnesota Democrat and member of the Senate Judiciary Subcommittee on Privacy, Technology and the Law, said Monday the new agreement resembled previous deals with the Justice Department that she said ultimately failed to curtail monopoly activity by Live Nation. Klobuchar praised the holdout states and called it “troubling” that the deal was announced a month after the head of the Justice Department’s antitrust division was ousted.
Wall cited the differing demands among states as a reason a quick resolution was unlikely.
“The states don’t all want the same kinds of relief,” he said.
Background
The antitrust lawsuit was brought by the federal government and 39 states and the District of Columbia. Lawyers for the plaintiffs said Live Nation and Ticketmaster controlled virtually every aspect of the industry, from concert promotion to ticketing, and drove up prices for fans through threats and retaliation. The companies maintained that artists, sports teams, and venues set prices and decide how tickets are sold.