Live Nation CEO Michael Rapino sued by shareholder

A Live Nation investor has filed a lawsuit against the company`s board members, including CEO Michael Rapino and CFO Joe Berchtold, in response to legal action initiated by the U.S. Department of Justice (DOJ). The lawsuit also names Tim Leiweke, CEO of Oak View Group, alleging collusion between the two live music companies. The DOJ accuses Live Nation and its subsidiary, Ticketmaster, of anticompetitive behavior and seeks a court order to divest Ticketmaster, acquired by Live Nation in 2010. The DOJ asserts that Live Nation violated a consent decree designed to address competition concerns post-merger. Shareholder John Williams claims the DOJ`s legal action will severely harm Live Nation and its shareholders, citing the significant costs of defending against the allegations. Williams alleges that the board`s conduct, post-merger, breached their fiduciary duties by engaging in anticompetitive practices despite the consent decree. Furthermore, Williams accuses the board of misleading shareholders by claiming cooperation with federal investigators while allegedly obstructing the DOJ`s investigation. The lawsuit details internal communications illustrating alleged antitrust violations, including collaboration between Live Nation and Oak View. Williams contends that Oak View and Leiweke aided Live Nation`s board, with Leiweke purportedly referring to his company as a "pimp" and a "hammer" for Live Nation and threatening venues considering alternatives to Ticketmaster. Live Nation has denied all DOJ allegations and, if proven innocent of anticompetitive conduct, the board members would not be liable for breach of duty. The defendants have yet to respond to the new lawsuit.