The United States federal government and seven states are suing Ticketmaster and its parent company, Live Nation Entertainment, for failing to crack down on ticket resellers, which is forcing customers to "pay substantially more than face value" for popular concerts and events.

The Federal Trade Commission leveled a litany of accusations against Live Nation in its press release Thursday, including "bait-and-switch pricing," where consumers often pay more than advertised, and said claims that the company imposes "strict limits" on ticket purchases are false since "ticket brokers routinely and substantially exceeded those limits."

Shares of Live Nation dropped more than 2% in midday trading. The company didn't immediately respond to CNN's request for comment.

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