Photo Credit: Live Nation
Live Nation is under fire with the former Attorney General of Louisiana, whose law firm is investigating the company and certain executives over allegedly false or misleading statements about Live Nation’s business operations.
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., announces that the law firm of Kahn Swick & Foti LLC (KSF), of which he is a partner, has opened an investigation into Live Nation Entertainment. KSF’s investigation focuses on whether Live Nation’s officers or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
A securities class action lawsuit was filed against Live Nation and certain executives in August 2023, alleging that the defendants made “materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects.”
Namely, the lawsuit asserts that Live Nation failed to disclose its anticompetitive conduct, including charging high fees and extended contracts with talent, as well as retaliating against venues. As a result, the company was “reasonably likely to incur regulatory scrutiny” and face fines and penalties. The court presiding over that case denied Live Nation’s motion to dismiss, allowing the case to move forward.
KSF serves as one of the nation’s premier boutique securities litigation law firms and serves a variety of clients — including public institutional investors, hedge funds, money managers, and retail investors — in seeking recoveries for investment losses from corporate fraud or malfeasance by publicly traded companies.
News of KSF’s investigation into Live Nation comes on the heels of shareholders suing the event and ticketing conglomerate, arguing that Live Nation should be forced to disclose the ongoing public pressure resulting from federal investigations into its business practices.
Further, shareholders posit that the company should disclose how much its financial success is attributed to its market share dominance in the live performance industry, as opposed to actual demand for concert tickets.
Attorneys representing the shareholders in that case are focusing specifically on language used within Live Nation’s shareholder report, which notably glossed over the threat posed by a federal antitrust investigation. A federal judge denied Live Nation’s motion to dismiss that lawsuit at the end of February, enabling the case to move forward.
