Live Nation Settles Lawsuit, Closes On MD/VA Franchise
January 27, 2011 at 3:32 PM (PT)
LIVE NATION ENTERTAINMENT has settled a class-action lawsuit over fees charged by its subsidiary, TICKETMASTER, reports the L.A. TIMES. The lawsuit accused TICKETMASTER of misleading customers when it tacked on $14.50 to $25 in delivery fees, alleging that they were designed to boost the company's profit.
LIVE NATION, which agreed to settle the lawsuit in DECEMBER, set aside $22.3 million to pay for legal fees and issue refunds to affected customers. It reduced its expected fourth-quarter earnings by the same amount, plus $4.9 million to "restructure its NORTH AMERICAN concerts business," according to a report filed the SEC.
As a result, LIVE NATION said it expects its fourth-quarter operating income to be $362 million, down from its previous estimate of $389 million. The company is expected to report its earnings FEB. 28th.
At the same time, TICKETMASTER announced it will assume operations of the TICKETMASTER DC, MARYLAND, and NORTHERN VIRGINIA franchise owned by MONUMENTAL SPORTS & ENTERTAINMENT.
"This closes a chapter for us with our U.S. franchises, and we are excited to move forward and directly deliver TICKETMASTER’s latest ticketing technology and solutions to clients in the greater DC area," TICKETMASTER CEO NATHAN HUBBARD said. "Clients and fans will have uninterrupted service and a seamless transition to the TICKETMASTER platform, along with our world-class distribution, client support, and customer service. We would like to thank the TICKETMASTER DC team for being such exceptional stewards of the TICKETMASTER brand in the greater DC area for the last two decades."