StubHub and its CEO, Eric Baker, are facing a $5-million class-action lawsuit in the United States due to their alleged connections with large-scale scalpers. The lawsuit, filed by New York ticket buyer Louis Sanquini, accuses StubHub of deceptive practices by misrepresenting itself as a “marketplace for fans to buy and sell tickets.”
Despite StubHub claiming to be merely a technology platform that does not directly handle tickets, recent disclosures revealed that Baker operates Andro Capital, a hedge fund involved in significant ticket resales on the StubHub platform.
Sanquini initiated the lawsuit in the Southern District of New York, claiming that consumers were misled about StubHub’s operations. 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 marketplace deceived consumers, leading them to accept prices and terms they would have rejected if the truth was known.
Sanquini stated that had he been aware of 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 rock band Kiss concert in 2023 or a Major League Soccer match in 2024.
In response to the lawsuit, a StubHub spokesperson declined to comment on the legal matter. None of the allegations have been tested in court.
The cancellation of thousands of World Cup ticket orders by StubHub has raised concerns and triggered demands for an external investigation. Customers who were assured refunds or replacement tickets found themselves excluded from World Cup matches, incurring losses on travel and accommodation expenses. This incident has led to complaints to regulatory authorities, including the U.S. Federal Trade Commission, Canada’s Competition Bureau, Consumer Protection B.C., and the Texas Attorney General’s office.