An investor has filed suit against current and former board members and executives at stage entertainment giant Live Nation for allededly misleading shareholders and the public by downplaying or withholding information about the nature of a Justice Department investigation against Live Nation for allegedly engaging in "anticompetitive" activities, which allegedly harmed stock values.
The defendants "issued statements that were materially false and misleading and omitted to state material adverse facts," states the lawsuit, filed in U.S. District Court for the Central District of California.
Michael Rapino who has served as president, CEO and board member of Live Nation since 2005, is one of the named defendants in the lawsuit.
"By reason of their positions as officers and/or directors of Live Nation, and because of their ability to control the business and corporate affairs of Live
Nation, the individual defendants owed Live Nation and its shareholders fiduciary obligations of trust, loyalty, good faith, and due care, and were and are required to use their utmost ability to control and manage Live Nation in a fair, just, honest, and equitable manner," the lawsuit states.
On Nov. 18, 2022, the New York Times reported that the U.S. Justice Department had launched an antitrust investigation against Live Nation and Ticketmaster after a crash of the ticketing platform during presales of tickets to the Taylor Swift tour, the lawsuit states. Live Nation issued a statement denying antitrust violations, the suit said.
The company also issued "false and misleading" statements in its filings with the Securities and Exchange Commission, the suit alleges.
The defendants also allegedly failed to "ensure that adequate internal controls were in place regarding the serious business reporting
issues and deficiencies," the suit states.
It seeks unspecified money damages, plus attorney fees.
The plaintiffs are represented by attorneys Betsy C. Manifold, Rachele R. Byrd, Alex J. Tramontano and Ferdeza Zekiri, of the firm of Wolf Haldenstein Adler Freeman & Herz LLP, of San Diego.
Zwick v. Rapino, U.S. District Court for the Central District of California, 2:23-cv-09520