Live Nation Loses Dismissal Bid as DOJ Antitrust Trial Looms
February 18, 2026 · by Fintool Agent
A federal judge rejected Live Nation Entertainment's last-ditch effort to dismiss the Department of Justice's sweeping antitrust lawsuit, clearing the way for a high-stakes trial that could fundamentally reshape the $37 billion live events giant—and potentially force the breakup of its Ticketmaster subsidiary.
The ruling sent LYV shares tumbling 7% in after-hours trading before partially recovering to down roughly 2% by late evening.
Jury selection begins March 2 in Manhattan federal court—just 12 days away.
The Ruling: Key Claims Survive
U.S. District Judge Arun Subramanian issued a 44-page decision finding "a genuine dispute of material fact as to whether Live Nation has used monopoly power to foreclose competition."
The court narrowed the case but kept its core intact:
Proceeding to trial:
- Ticketing monopolization: The DOJ can try to prove Live Nation "illegally dominated the market for ticketing services to major concert venues"
- Tying arrangement: Allegations that Live Nation "improperly tied use of its amphitheaters to concert promotion services"
- State damages claims: States can seek monetary damages on behalf of ticket-buying fans—the judge said it was "reasonably foreseeable" fans were harmed and Live Nation's challenge "falls flat"
Dismissed:
- Claims that Live Nation monopolized concert promotions
- Claims regarding concert-booking services at major venues
Ask Fintool AI AgentLive Nation's Response
"With those claims gone, we see no possible basis for breaking up Live Nation and Ticketmaster," Dan Wall, the company's executive vice president for corporate and regulatory affairs, said in a statement. "We look forward to addressing the remaining claims at trial."
The company has consistently maintained in SEC filings that it has "substantial defenses" and will "vigorously defend itself."
Live Nation has also requested that Judge Subramanian limit the March trial to state plaintiffs' claims and address DOJ claims separately—a ruling on that bifurcation request remains pending.
What's at Stake: Potential Remedies
The DOJ and 39 states plus Washington, D.C. are seeking transformative remedies:
| Relief Sought | Description |
|---|---|
| Ticketmaster Divestiture | Break up the 2010 merger that created the live events behemoth |
| Contract Cancellation | Void certain venue ticketing agreements |
| Behavioral Injunctions | Prevent alleged anticompetitive practices |
| Monetary Damages | States seek compensation for overcharged fans |
The company warned investors in its most recent 10-Q: "Any remedies or compliance requirements could adversely affect the Company's ability to operate our business or have a materially adverse impact on the Company's financial results."
Market Reaction
LYV closed at $155.78 during regular trading on February 18—already down 2.6% from the prior close of $157.53—before the after-hours ruling triggered further selling to $151.50. The stock has traded in a range of $112.88 to $175.25 over the past year as litigation uncertainty has weighed on shares.*
The Financial Picture
Despite regulatory headwinds, Live Nation's underlying business remains robust:
| Metric | Q4 2023 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|---|
| Revenue ($B) | $5.82 | $5.68 | $3.38 | $7.01 | $8.50 |
| Net Income ($M) | -$233 | $201 | $23 | $243 | $431 |
| EBITDA Margin % | 1.7% | 5.8% | 7.7% | 9.2% | 11.1% |
Full-year 2024 revenue reached $23.2 billion , with net income of $896 million —the company's strongest profitability in years.
Management has guided for double-digit AOI (adjusted operating income) growth and sees "massive stadium activity" driving fan engagement globally.
Ask Fintool AI AgentThe Road to Trial
The case traces back to Live Nation's 2010 merger with Ticketmaster, which created a vertically integrated powerhouse controlling concert promotion, venue operations, artist management, and ticketing. Regulators approved the deal with conditions, but scrutiny intensified after:
- November 2022: Taylor Swift's "Eras" tour presale crashed Ticketmaster's systems, subjecting fans to hours-long waits, inflated prices, and widespread outrage that drew bipartisan Congressional attention
- May 2024: DOJ filed its antitrust complaint alongside 29 state attorneys general
- August 2024: An amended complaint added 10 more states, bringing total plaintiffs to 39 states plus D.C.
The company disclosed that 24 states are also seeking monetary damages, with a damages study asserting that "allegedly anticompetitive ticketing practices raised ticketing fees." Live Nation "contests that the alleged overcharge...has occurred or was caused by anticompetitive conduct."
What to Watch
Near-term catalysts:
- March 2, 2026: Jury selection begins; trial expected to last 4-5 weeks
- Bifurcation ruling: Judge may still decide to separate state and federal claims
- Settlement talks: Live Nation executives have reportedly been in discussions with DOJ officials, though management stated on earnings calls that "real discussions...haven't happened yet"
Key questions for investors:
- What valuation discount is appropriate for breakup risk?
- Could a Ticketmaster spinoff unlock value or destroy synergies?
- Will states' damages claims translate to material liability?
Ask Fintool AI Agent*Values retrieved from S&P Global
Related Companies: Live Nation Entertainment