Feds Probe Live Nation, AEG For Alleged COVID-Era Collusion: Report

Rivals Live Nation Entertainment and AEG Presents are facing a federal criminal investigation probing whether the competitors illegally coordinated their responses to COVID-era refunds and cancelations, sources told Bloomberg News.

Sources told Bloomberg that the Department of Justice is investigating if the two live leaders illegally colluded on refunds and artist negotiations during the pandemic and whether criminal charges are warranted. According to Bloomberg, sources say prosecutors have considered charging, among others, Live Nation CEO Michael Rapino.

“It is not illegal for artist agents, promoters and ticketing companies to work together to solve the unprecedented challenges of a global pandemic,” Live Nation executive vice president of corporate and regulatory affairs Dan Wall said in a statement. “While Live Nation contributed to this industry effort in good faith, we set our own unique policies and refund terms to support fans and artists. We did not collude with AEG or anyone else. We are proud of our leadership during those trying times, and if any charges result from this investigation, we will defend them vigorously.”

AEG Presents did not immediately return a request for comment.

The companies’ COVID refund policies were broadly similar. Both created a 30-day window for ticketholders to seek refunds for postponed events and offered full refunds for canceled shows. In its 2020 earnings report — which detailed one of the worst live entertainment years on record, obviously — Live Nation was bouyed by the fact that 83% of ticketholders had kept their tickets rather than seek refunds.

The criminal probe stems from the ongoing civil antitrust action filed nearly a year ago that seeks to reverse the 2010 Live Nation-Ticketmaster merger. The criminal probe began during the Biden Administration and has continued and even accelerated under President Donald Trump, Bloomberg reports.