Live Nation stock drops after Astro world concertgoers files a lawsuit the company, Travis Scott and Drake

The lawsuit accuses the organizers of negligence and gross negligence and is seeking at least $1 million in damages.

Notables 

• Scott, Scoremore and Live Nation are named as defendants, the lawsuit also named Scott’s Cactus Jack Records, LLC and several other individuals and companies involved in the event.
• Eight people died at the concert.
• Travis Scott will donate all proceeds from the concert and cooperate with the investigator

Eight people died at Travis Scott’s Astro world concert in Houston Texas at the NRG Stadium. Live Nation is a publicly-traded entertainment company and since they have a business relationship with Tavis Scott, the concertgoers named them in a suit that was filed in Harris County, Houston Texas.  Live Nation stock is down 5 percent after the news about the lawsuit began to make rounds on social media.

The company was founded in 2010 and it promotes, operates, and manages ticket sales for live entertainments for artists around the world.  Live Nation’s stock symbol is LYV and the stock is selling for $117.35 per share as of today. It was down 5.21 percent after the lawsuit report came out.

According to Billboard, the suit was filed Saturday (November 6) in Harris County District Court by Manuel Souza. Souza reportedly referred to the incident as a “predictable and preventable tragedy,” and claimed that festival organizers disregarded potential warning signs, like when “concertgoers breached a security gate around the park, stampeded into the premises, and trampled over one another” earlier that day.

Souza’s complaint reportedly claims that the incident was the result of “a motivation for profit at the expense of concertgoers’ health and safety” and the “encouragement of violence,” noting that the concert continued even after audience members had “suffered serious obvious injury.”

Another lawsuit was also filed on Sunday by Texas attorney Thomas J. Henry against Scott, Drake (who appeared at the festival with Scott), Live Nation, and NRG Stadium, on behalf of “one of the victims.” The attorney announced that he will provide “immediate consultations to all injured victims as well as to families who had loved ones hurt or killed at the concert.”

Live Nation 52 weeks high price was at $127 per share and the stock may continue to suffer as the case drags on.