StubHub Faces Class-Action Lawsuit Over Undisclosed CEO Stake in Ticket-Resale Fund

On July 13, a complaint was filed in federal court alleging that StubHub misled buyers by hiding a conflict of interest involving its chief executive, Eric Baker. Plaintiff Louis Sanquini claims the platform was presented as a “fan-to-fan marketplace” while Baker’s fund, Andro Capital, has been buying and reselling tickets on StubHub since 2008, generating more than $5 million in proceeds since 2022. The lawsuit seeks damages for alleged fraud, unjust enrichment and violations of consumer-protection law on behalf of a nationwide class of ticket purchasers.

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Baker is the managing partner of Andro Capital, a ticket-reselling fund that also operates an affiliate, Colloquy Capital, which holds a referral agreement with StubHub. StubHub disclosed Baker’s ownership in pre-IPO filings to the Securities and Exchange Commission ahead of its September 2025 initial public offering, but the company did not publicize the relationship to ordinary consumers. The disclosures were later highlighted in a CBC News report, prompting the current legal action.

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Plaintiff’s attorney Keven Steinberg described the case as “about transparency and consumer trust” and emphasized that “consumers deserve honesty and transparency when they make event purchasing decisions.” StubHub’s spokesperson told CBC that Baker’s ownership “has been fully disclosed in StubHub’s public SEC filings” and that the company’s regulatory materials “contained detailed disclosures” addressing the business model. A StubHub representative declined to comment further on the lawsuit.

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Critics argue that StubHub’s marketing as a neutral marketplace created a false impression of independent sellers, thereby deceiving buyers who assumed they were dealing directly with other fans. The plaintiff’s team contends that the undisclosed financial stake undermines consumer confidence and violates the company’s own representations.

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• “Plaintiff and members of the proposed class purchased tickets on StubHub believing they were buying from individual fans through a neutral marketplace, when in fact StubHub’s own leadership has a direct financial stake in, and StubHub itself helps finance, the large-scale resale operations that supply much of the platform’s inventory,” — Complaint filing

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• “Defendants’ failure to disclose this conflict of interest, while affirmatively marketing StubHub as a fan-to-fan marketplace, deceived plaintiff.” — Complaint filing

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• “If companies make representations to the public, consumers are entitled to expect that those representations are complete and accurate,” — Keven Steinberg, attorney

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• “Consumers deserve honesty and transparency when they make event purchasing decisions, particularly on platforms that market themselves as ‘neutral marketplaces.” — Keven Steinberg, attorney

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• “has been fully disclosed in StubHub’s public SEC filings.” — StubHub spokesperson to CBC

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