StubHub and CEO Eric Baker face a $5-million class-action lawsuit in the U.S. for alleged ties to large-scale scalpers, as reported by CBC News recently. The lawsuit, filed by New York ticket buyer Louis Sanquini, accuses StubHub of deception and misrepresentation by portraying itself as a “marketplace for fans to buy and sell tickets.”
Despite claiming to be a mere technology platform without involvement in ticket transactions, recent filings with the U.S. Securities and Exchange Commission revealed that Baker operates Andro Capital, a hedge fund engaged in the substantial resale of sports and concert tickets on the StubHub platform.
Sanquini filed the class action in New York’s Southern District, alleging 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 contends that StubHub’s failure to disclose its CEO’s conflict of interest while marketing itself as a fan-to-fan marketplace misled consumers and led them to accept prices and terms they wouldn’t have agreed to if they knew the truth. Sanquini stated he would not have used StubHub to purchase tickets for events like a rock band Kiss concert in 2023 or a New York Red Bulls-New York City FC soccer match in 2024 if he had known about the company’s practices.
In response to the legal matter, a StubHub spokesperson declined to comment. None of the allegations have been tested in court.
The cancellation of thousands of World Cup ticket orders by StubHub, despite its “FanProtect Guarantee,” has drawn increased scrutiny and calls for an external investigation. Disappointed customers, promised refunds or replacement tickets, were left stranded at World Cup matches, incurring travel and accommodation expenses. This situation has led to complaints to regulatory authorities and formal investigations by various agencies.