U.S. Justice Department just sued Live Nation: find out more

Live Nation Entertainment Inc (NYSE: LYV) is in the red at writing after the U.S. Department of Justice sued it for alleged antitrust violations. 

$LYV accused of maintaining a monopoly

The lawsuit alleges $LYV of “unlawful, anticompetitive conduct” aimed at maintaining a monopoly in the ticketing industry. 

Its conduct, as per Merrick Garland (Attorney General), squeezes out smaller promoters, raises fees, and leaves artists with “fewer opportunities to play concerts” and venues with “fewer real choices for ticketing services”. 

Note that the $22 billion giant owns the ticket sales and distribution company – Ticketmaster. 

The news arrives a couple weeks after Live Nation reported better-than-expected revenue for its first financial quarter. At 53 cents a share, however, it lost way more than experts’ forecast in Q1. 

Watch here: https://www.youtube.com/embed/_I7QIPXMXpE?feature=oembed

Live Nation’s response to the DOJ’s allegations

A total of 30 states joined the lawsuit filed against Live Nation on Thursday. 

Still, the entertainment company sees DOJ’s allegations as “absurd”. Its response to the lawsuit this morning reads:

The DOJ’s complaint ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary tickets cost.

Ticketmaster merged with Live Nation in 2010. The New York listed firm currently operates over 265 entertainment venues across North America. Wall Street currently has a consensus “buy” rating on $LYV that’s now down nearly 10% versus its year-to-date high in late March.

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