Lawsuit Accuses Ticketmaster, Live Nation of ‘Racketeering Activity’

A new lawsuit filed by fans of Taylor Swift and other musicians allegedly accuses Ticketmaster and its parent company, Live Nationabout collaborating with other organizations to drive up ticket prices.

The plaintiffs allege that this conduct violates the Racketeer Influenced and Corrupt Organizations Act (RICO), as the organizations colluded with partners in such a way that they became an illegal enterprise, Wired reported Monday (Nov. 18).

Their complaint, which was filed Friday (Nov. 15) in California state court and expands on a federal lawsuit filed by Swift fans, accuses Ticketmaster and Live Nation of engaging “in a pattern of racketeering activity,” according to the report.

A Live National spokesperson said in the report: “This lawsuit is based on false assumptions about how ticketing works. Artist groups, not Ticketmaster, set prices. Live Nation does not own stadiums in the United States and primary tickets are consistently priced below market value, which of resale prices that average more than double.”

The US Department of Justice (DOJ) filed a lawsuit to wind up Live Nation in May, alleging antitrust violations and monopolistic practices.

“We allege that Live Nation is engaging in unlawful, anticompetitive conduct to exercise its monopolistic control over the live event industry in the United States at the expense of fans, artists, smaller promoters and venue operators,” Attorney General Merrick Garland said in a statement announcing the case at the time.

Live Nation responded to that lawsuit by calling the charges “absurd.”

Dan Wallexecutive vice president of corporate and regulatory affairs at Live Nation, said: “It ignores everything that is actually responsible for higher ticket prices, from rising production costs to artist popularity, to 24/7 online ticket scalping.”

A day after the DOJ filed its case, a consumer antitrust lawsuit was filed accusing Live Nation of exercising monopoly control over its industry.

At the time of the filing in May, the lawsuit sought $5 billion in damages on behalf of what could be millions of customers.

Live Nation has faced criticism for its ticket fees, customer service and allegedly anti-competitive practices since the merger of Live Nation and Ticketmaster in 2010.