The legal troubles continue to mount for concert behemoth Live Nation, as a new investor suit lays the blame for renewed antitrust scrutiny squarely at the feet of top executives.
Shareholder John Williams filed a derivative complaint this week accusing CEO Michael Rapino, CFO Joe Berchtold, and Oak View Group’s Tim Leiweke of breaching their fiduciary duty by approving anti-competitive practices. These led directly to the costly DOJ investigation now threatening the company, according to the filing.
Williams alleges the board simply refused to heed the 2010 merger consent decree with Ticketmaster, instead sanctioning collusive behavior that reinvigorated monopoly concerns. Internal emails unveiled by prosecutors purportedly show brazen violations like output collusion between rival firms Live Nation and Oak View.
In a damaging revelation, the suit depicts Leiweke as an active fixer for Live Nation, at times menacing venues weighing defection from Ticketmaster. His Oak View, once viewed as a competitive threat, became a silent partner in anti-competitive scheming, the filing contends.
Shareholders are left footing the legal bill as Live Nation fights government demands to unload Ticketmaster. But Williams pins responsibility on leaders who opted for profits over compliance, claiming their defiance severely damaged the business and misled investors.
If proven, the lawsuit suggests top brass saw antitrust decrees as toothless, acting with impunity until regulators had seen enough.
