The Biz: Ex-DOJ Attorneys Rail Against LN Settlement; UMG Eyes €1B Bond Sale; Musicians’ Union Sues Labels Over AI

A former Department of Justice antitrust attorney lamented the federal government’s settlement with Live Nation during this week’s NIVA conference in Minneapolis.

“When I stood up and gave the opening statement in this case, I believed that we were going to win,” David Dahlquist, the former Deputy Director of Litigation who led the case, said. “And when the settlement was entered, I still believed that we were going to win. …, I knew the case, I knew the witnesses, I knew the evidence.”

Dahlquist said he and his team had not seen the settlement terms before they were entered into the court record, reinforcing speculation and Wall Street Journal reporting that the negotiations were handled not by litigators but by senior Justice Department and White House officials, a highly unusual circumstance.

So fervently did Dahlquist believe in the merits of the case that he helped the group of states who were ultimately successful at the trial at which a jury found that Live Nation operated as an illegal monopoly.

“I was neither asked nor did I provide input into that settlement that was ultimately entered into by the Department of Justice. We stayed on, myself and the trial team. … we helped the transition, everything to the states, to make sure they could go forward,” he said.

UMG Readies For Billion-Euro Bond Sale: Report

After rejecting a takeover bid by Bill Ackman’s Pershing Square, UMG is eyeing a billion-euro bond issuance, Bloomberg reports.

The sale would include two €500 million tranches, maturing at four and 10 years.

UMG took a €1 billion bridge loan earlier this year with a repayment due next month, Bloomberg says; another €500 million bond matures next year.

Musicians’ Union Sues Labels In AI Spat

The American Federation of Musicians filed suit in federal court against UMG and Warner alleging the labels licensed recordings made by AFM members to AI music firms Suno and Udio without payment or credit.

“The AFM brings this lawsuit because defendants, two of the largest music companies in the world, have licensed sound recordings on which AFM-represented musicians have worked, without compensation or credit, to two AI companies,” the complaint reads, in part. “At the same time, they have refused to provide information to the AFM about which recordings and whose work is being licensed.”

The labels settled suits with Udio last year, while Warner settled separately with Suno. As part of the settlement, the labels agreed to license their catalog for new use to the AI companies. The AFM says its members have not received compensation for that licensing, nor do they know which works have been licensed.