Judge May Allow Ticketmaster Customers’ Antitrust Class Action to Proceed
Millions of customers who purchased tickets through Ticketmaster may soon advance with their antitrust class action lawsuit against the company and its parent organization, Live Nation Entertainment. This development follows a recent court motion for class certification that was taken under submission by U.S. District Judge George Wu.
Overview of the Class Action Lawsuit
The consumer lawsuit, initiated in January 2022, alleges that Ticketmaster and Live Nation dominate the ticketing market. Plaintiffs argue this monopoly results in excessively high ticket prices for both original purchasers and those buying resale tickets. The court has previously determined that these claims about monopolistic behavior are credible.
Market Share and Allegations
- Ticketmaster reportedly controls about 60% of a particular submarket in the ticketing industry.
- The lawsuit seeks monetary damages for consumers affected by these alleged practices.
Legal Challenges Faced by Live Nation
Earlier this year, the U.S. Supreme Court rejected Live Nation’s appeal to enforce a contentious arbitration clause. This clause was designed to divert consumer complaints from courts. The high court’s decision underscores a significant reported setback for Live Nation.
The ruling upheld a Ninth Circuit decision that deemed the company’s previous arbitration terms “unconscionable” and invalid under California law. This outcome allows the consumer lawsuit to proceed in federal court.
Ongoing Antitrust Cases
In addition to the consumer lawsuit, Live Nation and Ticketmaster are facing another antitrust challenge initiated by the U.S. Department of Justice and 39 states. This government action aims to dismantle the two companies’ operations.
Judge Wu has also denied Live Nation’s request to postpone the class action lawsuit until after the government’s case is resolved. A trial regarding the government’s actions is set to begin in March of next year.
