Live Nation is facing a class action lawsuit over its business practices in which the company is accused of misleading investors and participating in antitrust practices. In the suit, filed on August 4 in California federal court, investors accused Live Nation of lying to them over allegedly anticompetitive business practices including charging unnecessarily large fees, bundling services and retaliating against venues that choose a ticketing service provider other than Live Nation subsidiary Ticketmaster.

Invite only: Multiple law firms have sent out notices soliciting investors to join the lawsuit following reports that the Department of Justice plans to sue Live Nation for antitrust violations. The suit cites a stock drop of nearly eight percent after The New York Times reported last year that the DOJ had opened an investigation into Live Nation. The company's stock price fell another nearly eight percent last month after Politico reported that competition enforcers could file an antitrust suit against the company by the end of the year.

The lawsuit alleges that because Live Nation did not properly disclose regulatory concerns, "Plaintiff and other Class members have suffered significant losses and damages." Brian Donley, who purchased five shares in Live Nation stock on July 25, is named as the plaintiff in the case with Live Nation CEO Michael Rapino and president and CFO Joe Berchtold named as defendants.

Making statements: The suit points to multiple allegedly false or misleading statements made by Live Nation over concerns about its business practices including ones made following the 2022 Taylor Swift ticket debacle and regarding a settlement with the DOJ after the agency found in 2019 that Live Nation had been violating the terms of a settlement to greenlight its 2010 merger with Ticketmaster.

The suit alleges violations of the Securities Exchange Act, which prohibits misrepresentations and misleading omissions related to securities transactions, and seeks to represent investors who purchased securities from February 23, 2022 to July 28, 2023.