StubHub and its CEO, Eric Baker, are facing a $5-million class-action lawsuit in the United States for their alleged connections to major scalpers, as revealed by CBC News recently. The lawsuit, brought by New York ticket buyer Louis Sanquini, accuses StubHub of deceptive practices by presenting itself as a “marketplace for fans to buy and sell tickets.”
Despite StubHub’s claim of being solely a technology platform without involvement in ticket transactions, recent filings with the U.S. Securities and Exchange Commission disclosed that Baker operates Andro Capital, a hedge fund engaged in significant ticket resales on the StubHub platform.
Sanquini filed the class action in the Southern District of New York, claiming that consumers were misled into believing StubHub was a neutral marketplace. Lead counsel Kevin Steinberg emphasized the importance of honesty and transparency for consumers.
The lawsuit alleges that StubHub’s failure to disclose its conflict of interest while marketing itself as a fan-to-fan platform led consumers to unknowingly accept unfavorable terms and prices. Sanquini stated that had he known about the CEO’s financial interests and the company’s support for professional resellers, he would not have used StubHub to purchase tickets for events like a Kiss concert in 2023 or a Major League Soccer match in 2024.
Regarding the allegations, a StubHub spokesperson declined to comment on the legal matter. None of the claims have been tested in court.
The cancellations of thousands of World Cup ticket orders by StubHub have raised concerns and triggered demands for an external investigation. Despite the “FanProtect Guarantee” promised by StubHub, many customers were left without refunds or replacement tickets, missing out on World Cup matches and incurring additional expenses for travel and accommodations.
The situation has resulted in numerous 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, reflecting the gravity of the issue.
