Live Nation Faces Setback As Supreme Court Declines Appeal In Antitrust Case: Report

According to a Bloomberg News report, without issuing a comment, the justices upheld a federal appeals court ruling that deemed Live Nation’s arbitration agreements with customers “unconscionable” and unenforceable under California law.

The U.S. Supreme Court has reportedly declined to hear Live Nation Entertainment’s (LYV) appeal in a consumer antitrust case, in a blow to the company's attempt to steer its legal challenges toward arbitration.

According to a Bloomberg News report, without issuing a comment, the justices upheld a federal appeals court ruling that deemed Live Nation’s arbitration agreements with customers “unconscionable” and unenforceable under California law.

Shares of the company were down nearly 1% in early trading. Retail sentiment on the stock remained unchanged in the ‘neutral’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

The report added that the company had sought to direct cases into group arbitration through New Era ADR. Bloomberg noted that the rebuff allows consumers to press ahead with a lawsuit that claims they paid inflated ticket fees.

The customers are pursuing class-action status in a lawsuit filed in federal district court in Los Angeles, which also lists Live Nation’s Ticketmaster subsidiary as a co-defendant, Bloomberg reported.

In September, the U.S. Federal Trade Commission (FTC) reportedly sued Ticketmaster and Live Nation Entertainment (LYV) regarding tactics related to “illegal” ticket resale. According to a CNBC report, a lawsuit was filed in California’s federal court, and seven states joined the complaint, including Florida, Illinois, and Virginia.

Live Nation shares have gained nearly 20% this year and jumped about 40% in the last 12 months. 

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