Another class action lawsuit has been filed against Ticketmaster on behalf of its shareholders, according to the Los Angeles Business Journal, this one claiming that Ticketmaster sold itself too cheaply to Live Nation.
In the suit, which was filed on Friday in Los Angeles Superior Court, Ticketmaster shareholders allege in court documents that Ticketmaster executives exploited the temporary downturn in the company’s share price, off almost 40 per cent in the last three months, and secured benefits for themselves outside of the deal to the detriment of Ticketmaster’s public shareholders.
The shareholders are asking the court to block the deal.
On Friday, we told you about a similar lawsuit filed by Canadian shareholders against Ticketmaster the day before.
As far as we can tell, no Live Nation shareholders are suing, but if we owned Live Nation stock, we’d be kind of upset. After all, the company spent what would seem like a significant amount of time and money building a ticketing service that will probably not be used any more once the company combines with Ticketmaster.