StubHub and its CEO, Eric Baker, are facing a $5-million proposed class-action lawsuit in the United States due to their connections with large-scale scalpers, as reported by CBC News recently. The lawsuit, brought forth by New York ticket buyer Louis Sanquini, accuses StubHub of deceptive practices and fraudulent misrepresentation for portraying itself as a “marketplace for fans to buy and sell tickets.”
Despite StubHub claiming to be merely a technology platform without involvement in ticket transactions, recent disclosures to the U.S. Securities and Exchange Commission revealed Baker’s association with Andro Capital, a hedge fund engaged in significant ticket resale on the StubHub platform.
Sanquini filed the class action in the Southern District of New York, alleging that consumers were misled about StubHub’s neutrality as a marketplace. Lead counsel Kevin Steinberg emphasized the importance of honesty and transparency for consumers, noting that the case revolves around ensuring that public representations by companies are accurate and complete.
The lawsuit asserts that StubHub’s failure to disclose the conflict of interest while promoting itself as a fan-to-fan marketplace led consumers to accept prices and terms they would have rejected if they knew the truth. Sanquini expressed regret over using StubHub to purchase tickets for events like a Kiss concert in 2023 and a Major League Soccer match in 2024 had he been aware of the company’s practices.
In response to the lawsuit, a StubHub spokesperson declined to comment on the legal matter. It is essential to highlight that the allegations mentioned in the lawsuit have not yet been tested in court.
The cancellation of thousands of World Cup ticket orders by StubHub has drawn significant scrutiny, especially considering the promises made under its “FanProtect Guarantee.” Many affected customers were left without refunds or replacement tickets, leading to financial losses and missed opportunities to attend the World Cup. This situation has triggered complaints to regulatory bodies such as the U.S. Federal Trade Commission, Canada’s Competition Bureau, Consumer Protection B.C., and the Texas Attorney General’s office.
