Live Nation Reacts After Loss In Monopoly Trial: “Verdict Is Not The Last Word”

Live Nation ain’t turning the other cheek to a stinging jury verdict today that labelled the Ticketmaster-owning concert and talent promoter as a monopoly.

“The jury’s verdict is not the last word on this matter,” the company declared hours after federal jurors in NYC decided Live Nation jacked up fees and worked to stamp out competition. “Pending motions will determine whether the liability and damages rulings stand,” the media giant added. “Of course, Live Nation can and will appeal any unfavorable rulings on these motions.” (read the full statement below)

Coming after a five week long trial and four days of deliberations (not mention a White House cameo and partisan salvos galore), the jury’s verdict that the Michael Rapino-run LN are in violation of federal and state antitrust laws could see the company forced to divest from Ticketmaster (which it merged with in 2010), face big fines or even be cut up entirely. With revenue of more than $25 billion last year out of 55,000 shows and events, Live Nation now has to await Judge Arun Subramanian determining what the actual damages are.

The then Pam Bondi-led Department of Justice dropped out of the two-year-old case in early March after unveiling a surprise(ish) settlement with Live Nation one week into the Manhattan-based trial. Needless to say, the vast majority of the DOJ’s 40 state partners in the action were not pleased. In a matter of days, California AG Rob Bonta, New York’s Letitia James, and 32 other states took the lead in the matter and continued to pursue the case – successfully, as today proved.

Still, the “we are fierce competitors” closing arguments words of Live Nation’s lead Lathan & Watkins lawyer David Marriott can be heard in the company’s reaction this afternoon. While seemingly copping to having to pay out around $450 million when all is said and done, Live Nation made it clear also the state AGs’ victory dance could be short lived.

Noting the “already accrued $280 million toward state damages and civil penalty claims” out of that DOJ settlement, Live Nation noted Wednesday: “Injunctive relief will be determined by the Court after the states make a remedy proposal, which we expect in the coming weeks. In the meantime, the Tunney Act proceedings regarding the DOJ settlement will continue. We remain confident that the ultimate outcome of the States’ case will not be materially different than what is envisioned by the DOJ settlement.”

Additionally, a Live Nation April 8 filed memorandum of law for judgment, which will now be back in play, asserts a large chunk of the states’ (and one time the feds) premise of the company’s alleged industry dominance as off-base — way off base.

“Plaintiffs never presented any evidence to the jury identifying the 257 venues they say are in their ‘major concert venue’ markets,” the 35-page MoL says. “The jury cannot possibly find that this set of venues constitutes a market when Plaintiffs never even identified them.” It adds: Representatives from primary ticketing companies likewise indicated that they do not view competition in the industry as limited to Plaintiffs’ major concert venues; rather, the same primary ticketing companies that compete to ticket those venues also compete to ticket other venues— clubs, theaters, amphitheaters, arenas, and stadiums.”

Or stripping it down, Live Nation say: “Plaintiffs’ focus on “major concert venues” also finds no basis in the record. Plaintiffs are trying to have it both ways.”

Risking a seismic break-up and a massive live entertainment shift (or both and more),we will see which way this goes .. and goes over the next couple of years as Live Nation fight this in every court they can (Hi SCOTUS)

Read Live Nation’s full response to today’s jury’s verdict here:

The jury’s verdict is not the last word on this matter. Pending motions will determine whether the liability and damages rulings stand.

Live Nation will soon renew its motion for judgment as a matter of law, which the Court deferred until after the jury returned its verdict. That motion addresses all liability theories. The Court previously noted that Live Nation’s motion raises serious issues.

There is also a pending motion to strike the damages testimony on which the jury’s award was based. The Court deferred ruling on that motion as well, while noting significant concerns with the damages expert’s analysis.

Of course, Live Nation can and will appeal any unfavorable rulings on these motions.

The jury’s award of $1.72 per ticket applies to a limited number of tickets—those sold at 257 venues, which represent about 20% of total tickets—and only to purchases by fans (excluding brokers) in certain states over the past five years. Based on that scope, we believe the aggregate single damages figure would be below $150 million, which would be trebled.  In connection with the DOJ settlement, Live Nation has already accrued $280 million toward state damages and civil penalty claims.

Injunctive relief will be determined by the Court after the states make a remedy proposal, which we expect in the coming weeks. In the meantime, the Tunney Act proceedings regarding the DOJ settlement will continue. We remain confident that the ultimate outcome of the States’ case will not be materially different than what is envisioned by the DOJ settlement.