StubHub Customer Can’t Bring Class Action Lawsuit Over CEO’s Ticket Broker Fund

A judge has dismissed efforts to bring a class action lawsuit against StubHub, a ticket resale platform, over its relationship with a ticket-reselling fund operated by the company's CEO, Eric Baker. Judge Jed S. Rakoff ruled that all claims must be handled through individual arbitration, as stipulated in StubHub's terms of service.

The lawsuit, filed by Louis Sanquini in July, alleged that he would not have purchased tickets from StubHub if he had known of the relationship between the company, Baker, and Andro Capital, a ticket broker fund that has generated significant profits from StubHub's platform. While the judge did not make any findings on the substance of Sanquini's allegations, he stated that they fall within the scope of the arbitration agreement and cannot be litigated in court.

Sanquini's lawyer, Keven Steinberg, plans to pursue the allegations in arbitration. StubHub's ties to Andro Capital are also under investigation by Democrats in the U.S. House of Representatives, who are demanding information and records to determine if the company engaged in market manipulation and self-dealing.