Report: Class Action Suit Filed Against Clear Channel And Live Nation
June 5, 2006 at 3:33 PM (PT)
A class action lawsuit has been filed against CLEAR CHANNEL COMMUNICATIONS and its former concert promotion branch LIVE NATION for allegedly violation of anti-trust laws by limiting concert compeitition and inflating ticket prices, reports REUTERS.
The suit, which was filed FRIDAY (6/2) in DENVER, accuses the defendents of limiting radio airtime for musicians who chose to go with another concert promoter, and of inflating musicians' fees as much as more than 100% of gross sales in order to scare competitors from the market. It comes 3 months after a U.S. Justice Department probe into similar matters ended with no action taken against CLEAR CHANNEL after it agreed to spin off LIVE NATION to become a separate company. The latest suit was filed because "LIVE NATION and CLEAR CHANNEL COMMUNICATIONS INC. both continue to be dominated by the same individuals," court papers said.
In JANUARY, a federal appeals court in NEW YORK ruled that the relevant market for concert tickets was local, not national, so this lates lawsuit is limited to the DENVER regional market. The case seeks unspecified monetary damages on behalf of all customers who purchased tickets for concerts promoted by the defendants from JUNE 1998-DECEMBER 2005 in COLORADO, parts of UTAH, NEW MEXICO, ARIZONA, KANSAS, WYOMING and NEBRASKA.