Live Nation Stock Closes Higher On DOJ Settlement Without Cash Component

• This settlement will resolve all remaining matters with the DOJ, without any admission of wrongdoing, the company said.
• There is no financial component to the settlement with the DOJ.
• The company has created a $280 million settlement fund to address the states' damages claims. 

Live Nation Entertainment on Monday announced today that the company has reached a settlement with the United States Department of Justice (DOJ) in the antitrust lawsuit brought by the department.

This settlement will resolve all remaining matters with the DOJ, without any admission of wrongdoing, and the settlement will be reflected in a final proposed judgement that will be submitted to the court for approval, it said. 

“We are pleased to have settled our lawsuit with the United States Department of Justice,” the company said in a statement. 

Details

LYV said that the settlement will also include an eight-year extension of the company's consent decree with the DOJ, including retaliation and conditioning terms, providing venues ongoing comfort that the company does not condone such behavior.

“The company has consistently maintained that the DOJ's allegations were without merit, and a portion of the original claims were dismissed by the court before trial began,” the statement said. 

There is no financial component to the settlement with the DOJ. This does not settle the claims of all plaintiffs in the lawsuit, and the company has created a $280 million settlement fund to address the states' damages claims, it said. 

New York AG’s Response

“We will keep fighting this case without the federal government so that we can secure justice for all those harmed by Live Nation’s monopoly,” New York Attorney General Letitia James said on the new developments in her ongoing lawsuit against Live Nation/Ticketmaster for illegally monopolizing the live entertainment industry.

“The settlement recently announced with the U.S. Department of Justice fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers. We cannot agree to it,” James said in her statement. 

Joining Attorney General James in continuing the lawsuit against Live Nation are the attorneys general of Arizona, California, Colorado, Connecticut, Illinois, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Nevada, among several others. 

Retail Reaction

Retail sentiment around LYV trended in ‘neutral’ territory amid ‘low’ message volume. 

Shares in the company have risen 16.4% year-to-date. 

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