Live Nation, Ticketmaster trial to resume after 7 states join a Justice Department settlement

NEW YORK (AP) - More than 30 states will resume their antitrust trial against Live Nation and Ticketmaster on Monday after negotiations this week failed to result in many states joining a tentative settlement reached by the Justice Department.

Lawyers told the judge Friday at a hearing in New York that seven states - Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, South Carolina and South Dakota, all of which have Republican attorneys general - were joining the Justice Department in settling with the live music giant.

The other 32 states, along with the District of Columbia, plan to continue trying to convince a jury that Live Nation Entertainment and its ticketing subsidiary, Ticketmaster, are squelching competition and driving up prices for fans. They say this was done through threats, retaliation and other tactics to control virtually every aspect of the industry, from concert promotion to ticketing.

The companies say they do not monopolize their industry and that artists, sports teams and venues set prices and decide how tickets are sold.

A jury had already begun hearing testimony in the trial when the U.S. Justice Department, which had taken the lead in suing Live Nation, said it had reached a deal with the company that would save the public money by letting competitors of Live Nation into some ticket markets where they are currently excluded.

Many states criticized the deal, saying the federal government failed to get enough concessions from the company.

Testimony was put on hold for a week for more settlement negotiations, but with no breakthrough in sight, Judge Arun Subramanian said Friday the trial would resume.

The judge also ruled against Live Nation's objection to trial exhibits in which a company employee several years ago tells another worker that the prices Live Nation charges to access the VIP area of a Tampa, Florida, amphitheater are "outrageous," that customers paying the fees "are so stupid" and that "I almost feel bad taking advantage of them" before writing, "BAHAHAHAHAHA."

Live Nation had argued against their inclusion in the trial, saying the employees were making "passing references to non-ticket ancillary products - such as VIP club access, premier parking, or lawn chair rentals - sold to concertgoers at two amphitheaters" in Florida and Virginia.

The judge said the overall fan experience is relevant to the relationship between performers and their customers and some artists might not want to perform if fans were being charged too much for lawn chairs or other amenities.

Subramanian said it was no different than the harm that might occur to the film industry if movie theaters began charging $50 for concessions such as soda, candy and popcorn.

In a statement issued Thursday, Live Nation said it had just learned about the private conversation between the employees and planned to look into it promptly because the conversation "absolutely does not reflect our values or how we operate."

At a hearing on Tuesday, Live Nation attorney Dan Wall told the judge that the chance all states would settle their claims this week was "about zero."