Judge Orders Negotiations as Live Nation, DOJ Clash Over Settlement and Possible Mistrial*

New York City-

A federal courtroom grew tense as a judge pressed attorneys from the U.S. Department of Justice (DOJ), Live Nation, and several states to negotiate a potential settlement in an antitrust case that could otherwise end in a mistrial.

According to live courtroom reporting by Inner City Press, the hearing opened with an unusual pause. “Suddenly the courtroom gets (nearly) silent,” a reporter noted as DOJ attorney Dahlquist and Live Nation attorney Marriott stepped aside to confer.

Soon after, both legal teams returned to the courtroom gallery to retrieve documents and consult with additional lawyers before the session resumed.

When proceedings continued, Judge Arun Subramanian called the courtroom to order and confirmed the presence of key participants. “I asked Mr. Rapino and the AGG to come. Are you here?” the judge said. Moments later, the report noted: “Yes. Rapino stands.”

As the hearing progressed, the judge expressed frustration with the lack of coordination surrounding settlement discussions. “You allowed us to pick a jury,” Judge Subramanian said, noting that senior DOJ leadership had not attended despite being invited. “His deputy apparently did not know, which is mindblowing.”

The judge also questioned whether the states involved in the case had been adequately prepared if a settlement was being considered. “The states knew a DOJ settlement could be near. Now they say they are not ready. It raises questions,” he said.

The court ultimately declined to rule immediately on a defense motion for a mistrial. Instead, Judge Subramanian said, “The court will reserve judgment on the motion for a mistrial.”

Attention then turned to the possibility of resolving the dispute through a consent decree. The judge asked DOJ attorney Assefi to explain what a settlement would mean legally.

“What does settling mean, in terms of a consent decree?” the judge asked.

Assefi replied that “the U.S. is satisfied with the term,” explaining that the government would release Live Nation from specific claims once the agreement is finalized and filed under the appropriate procedures.

Judge Subramanian also questioned whether the participating states would need to join the settlement. “States have to join?” he asked.

“Yes,” Assefi confirmed.

Live Nation’s legal team cautioned that reaching an agreement quickly would be difficult because the company still needed to consult with the states seeking damages.

“We need to speak with the states which brought damages claims,” Live Nation attorney Wall said. “Getting it done this week? Probability is 0%.”

The judge responded sharply to the pessimism, telling the parties negotiations must proceed regardless. “Not with that attitude,” he said, prompting laughter in the courtroom.

The discussion also revealed gaps in communication between federal and state officials. When the judge asked whether the states had been contacted over the weekend, one state representative responded, “No one reached out to us states over the weekend.”

Restarting the trial would not be easy either. According to the same representative, “We’d need 60 days to restart the trial.”

Judge Subramanian pushed back, saying the parties should already have been preparing for this situation. “You should have prepared to fix this,” he said. “Now negotiate this week.”

The judge even offered to help facilitate negotiations. “I could get you a Magistrate Judge this week,” he said.

Live Nation’s counsel responded cooperatively: “Just tell us what room to use.”

“You already have one,” the judge replied before asking, “Who negotiates for Live Nation?”

“Me,” attorney McDonald answered.

Before the hearing ended, DOJ attorney Dahlquist noted that another key figure in the case was currently out of state. “Mr. Marciano is back to LA. Who can speak with him?” Dahlquist asked.

The judge allowed updates to be shared with him and with the states, while clarifying that certain discussions should not involve the confidential term sheet.

“Agreed,” the judge said.

The session concluded shortly afterward. With the mistrial motion still unresolved and negotiations now underway, the judge made clear that the parties are expected to keep working toward a settlement before the case returns to court.