Live Nation, Ticketmaster trial to resume after 7 states join a Justice Department settlement

NEW YORK (AP) — More than 30 states will resume their antitrust trial against Live Nation and Ticketmaster on Monday in a New York federal court after negotiations this week failed to result in many states joining a tentative settlement reached by the Justice Department.

Judge Arun Subramanian said at a hearing in Manhattan on Friday that the states had dropped their request to restart the trial in coming weeks with a different jury.

Lawyers told the judge that Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, South Carolina and South Dakota were joining the Justice Department in settling.

The other 32 states involved, including many of the nation's largest and most populated, plan to continue to try to convince a jury that Live Nation Entertainment and its ticketing subsidiary Ticketmaster were squelching competition and driving up prices for fans. They say this was done 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 say they do not monopolize their industry and that artists, sports teams and venues set prices and decide how tickets are sold.

Judge Subramanian said the trial will resume Monday. He also ruled against Live Nation's objection to trial exhibits in which a company employee several years ago tells another worker that the prices Live Nation charges to access the VIP area of a Tampa, Florida, amphitheater are “outrageous,” that customers paying the fees "are so stupid” and that “I almost feel bad taking advantage of them” before writing, “BAHAHAHAHAHA.”

Live Nation had argued against their inclusion in the trial, saying the employees were making “passing references to non-ticket ancillary products — such as VIP club access, premier parking, or lawn chair rentals — sold to concertgoers at two amphitheaters” in Florida and Virginia.

The judge said the overall fan experience is relevant to the relationship between performers and their customers and some artists might not want to perform if fans were being charged too much for lawn chairs or other amenities.

Subramanian said it was no different than the harm that might occur to the film industry if movie theaters began charging $50 for concessions such as soda, candy and popcorn.

The jury began hearing evidence in the case only last week before the Justice Department reached a deal over last weekend that it says will save the public money by letting competitors of Live Nation into some ticket markets that they are currently excluded from.

Many states criticized the deal, saying the federal government failed to get enough concessions from Live Nation and Ticketmaster.

Subramanian urged states to negotiate over the past few days to see if they could also settle their claims, but the talks resulted in fewer states settling than the 10 states that a Justice Department official had predicted on Monday were ready to join the federal government's agreement.

At a hearing on Tuesday, Live Nation attorney Dan Wall told the judge that the chance all states would settle their claims this week was “about zero.”