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Live Nation Sues Insurer Over Canceled Lady Gaga Gig

02:01 PM Friday 3/8/13 |   |

Live Nation sued three syndicates of Lloyd’s of London, accusing the insurer of refusing to pay claims for a Lady Gaga concert that was canceled in Indonesia because of threats from Islamic radicals.

Indonesian and Jakarta police began receiving threats after the June 3 concert went on sale, according to the complaint filed by Live Nation LGTours, Mermaid Touring and The Atom Factory in U.S. District Court in Los Angeles. Lady Gaga is not a named party in the suit.

A number of extremist groups reportedly threatened Lady Gaga and her crew, saying they would prevent her from entering Jakarta or otherwise disrupt the stadium show. One group, the Islamic Defenders Front, “said it would dispatch 30,000 of its members and supports to prevent Gaga from entering Jakarta,” according to the complaint.

  • Lady Gaga

    Times Square New Year's Eve celebration, New York City
    December 31, 2011

    (AP Photo)

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The threats began coming in around May 14, when “Indonesian and Jakarta police and government officials and others began issuing statements that various Islamic or other groups were threatening to use force or violence against the Jakarta concert for political, religious, ideological or similar purposes,” Live Nation said in the complaint.

Muhali Barda, whom The Australian identified as a spokesman for the group, claimed that supporters had purchased more than 150 tickets to the concert, and posted a Facebook image of a man in a turban and sunglasses holding a $50 ticket to the show, the paper reported.

“We have gotten Lady Gaga tickets. Not to watch but for us to enter,” Live Nation quoted a caption as saying.

Jakarta police urged the concert be canceled, according to the Jakarta Globe.

“In order to prevent bodily injury and property damage and to protect lives and safety of Lady Gaga, all members of the Born This Way tour, and the public, on or about Thursday, May 17, 2012, the Jakarta Concert was necessarily canceled,” Live Nation said.

The promoters filed claims for losses with the three Lloyd’s syndicates, but Live Nation says the insurers refused to pay, conduct the promoter calls “despicable.”

The policy, according to the complaint, was to cover “ascertained net loss” for cancellations because of “the sole and direct result of terrorism and or sabotage or threat.”

The suit alleges breach of contract and breach of implied covenant of good faith and fair dealing, and seeks actual and punitive damages of at least $75,000 – though losses from the cancellation would be in the millions of dollars.
 


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