A federal judge in Los Angeles has ruled that an ERISA dispute between Live Nation Entertainment and former employees must be addressed via arbitration rather than in court.
Plaintiffs sued in March alleging the company and its 401(k) plan fiduciaries mismanaged the plan by charging excessive fees, failing to offer lower-cost mutual fund shares and failing to offer a less expensive stable value option.
The defendants petitioned the court to support their argument that the plan's arbitration agreement should prevail in the case of Avecilla et al. vs. Live Nation Entertainment et al., in which the plaintiffs sought class-action status.
"The plan's arbitration agreement is valid, enforceable, and encompasses plaintiffs' individual claims in this action," U.S. District Court Judge Percy Anderson wrote on Aug. 7. "The court also concludes that plaintiffs waived their right to pursue their class claims."
Live Nation Entertainment Inc. 401(k) Savings Plan, Hollywood, Calif., had $769 million in assets as of Dec. 31, 2021, according to the latest Form 5500.