LOS ANGELES (CelebrityAccess MediaWire) — Ticketmaster Entertainment shareholders have launched a class action lawsuit against the firm, contending that Ticketmaster sold itself to Live Nation for too low a price in the recently-announced merger.
According to the Los Angeles Business Journal, the suit alleges that Ticketmaster execs exploited the slump in Ticketmaster's share price brought on by the economic down turn to secure benefits for themsleves with side deals, to detriment of Ticketmaster's public shareholders. Like many stocks of late, Ticketmaster's share price has dipped precipitous 40% in recent months.
The proposed merger stipulates that each of Ticketmaster's stock holders picks up 1.38 shares of Live Nation stock per share of Ticketmaster stock they hold.
The shareholders have requested that a Los Angeles judge block the deal, which is currently pending a review by DoJ before it can proceed.
Lawyers for Ticketmaster or the shareholders declined to comment on the matter. – CelebrityAccess Staff Writers