Judge urges states to settle Live Nation claims after US strikes deal but states say no chance

NEW YORK (AP) — A New York federal judge on Tuesday urged over two dozen states to settle their antitrust claims against Ticketmaster and its parent company this week after the U.S. Justice Department reached a deal and dropped out of an ongoing trial.

But Dan Wall, a lawyer for Ticketmaster’s parent, Live Nation Entertainment, told Judge Arun Subramanian at a hearing in Manhattan that the chance all states would settle their claims by Friday was “about zero.”

He said he based his assessment on the nature of discussions between the ticketing and entertainment giants and the states over the past week. The states don’t all want the same kinds of relief, he said.

“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.”

At another point, Wall said: “There is zero chance we get this done by Friday.”

Subramanian quipped: “Not with that attitude.”

Still, the judge persuaded lawyers for both sides to negotiate in Manhattan federal court this week to see if they make progress before he decides whether to grant a mistrial request by the states and schedule a fresh start for a trial or to resume a trial next Monday that started with the presentation of evidence last week.

“Right now you should be focused on can we make a deal,” the judge told them, saying he would find them conference rooms throughout the courthouse to do their work. He even offered his robing room for office space. “I want to see if we can get a deal done here.”

Michael Rapino, president and CEO of Live Nation, attended the courthouse talks Tuesday.

On Monday, the Justice Department revealed that it had settled its antitrust lawsuit against Ticketmaster, describing the terms of the deal as a victory for consumers that would end an illegal monopoly over live events in the U.S.

At the trial, lawyers for the federal government and 39 states and the District of Columbia said Live Nation and Ticketmaster were squelching competition and driving up prices for fans through threats, retaliation and other tactics to “suffocate the competition” by controlling virtually every aspect of the industry, from concert promotion to ticketing. The companies insisted that artists, sports teams and venues set prices and decide how tickets are sold.

The Justice Department announcement was immediately met with strong criticism from multiple states. North Carolina Attorney General Jeff Jackson called it “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 that the new deal was like previous agreements with the Justice Department that ultimately failed to curtail monopoly activity by Live Nation.

Klobuchar praised states for opposing the deal and said it was “troubling” that the deal was announced a month after the head of the Justice Department’s antitrust division was ousted.

According to a court document, Live Nation agreed to let up to 50% of all tickets sold at amphitheaters it owns, operates or controls to be sold through any ticketing marketplace.

It also said it would cap its service fees at those amphitheaters at 15% and divest ownership or control of 13 amphitheaters, including venues in Milwaukee, Cincinnati, Syracuse, New York, and Austin, Texas. It said Live Nation will create a $280 million settlement fund to settle claims or pay civil penalties to states.

None of that money will be paid out if no states settle, though. A Justice Department official said Monday that at least 10 states had agreed to join the United States in settling the case.

That leaves over two dozen states that have not agreed to the deal, lawyers for the states say.