In response to the recent influx of complaints against secondary ticketing website StubHub, the company has asked a federal judge to dismiss the case. The lawsuit accuses StubHub of racketeering and directing $84 million in sales to other companies, including Spotlight, which claims that StubHub violated its American Express contract by allowing sellers to accept payment before the event.
The case was filed in California on behalf of consumers, who claimed that the company was unable to provide refunds to their eligible buyers.
While StubHub has formally rescinded its FanProtect guarantee, it still marketed this change as “in the best interest of consumers” and “fan-first.” In its defense, StubHub pointed to an order made by the UK Competition and Markets Authority that barred the company from merging with rival Viagogo Entertainment.
The lawsuit states that StubHub should refund ticket purchasers who were unable to attend the event. It also argues that StubHub should give customers a refund if the event is canceled. The lawsuit claims that the ticket company has not given its customers sufficient notice that the transaction would be resolved through arbitration. The company also acknowledges that its policy was “in the best interest of customers,” but maintains that it has a limited ability to pay out refunds.
StubHub has also been sued by many consumers over its refund policy.
The Washington DC AG has criticized StubHub’s response to the COVID pandemic, and Virginia’s AG, Mark R. Herring, has urged the company to release refunds to its consumers to protect the company’s business. The lawsuit is ongoing. It is expected to continue to go through the court process.
StubHub’s lawsuit was filed in California federal court on December 9 in Los Angeles, and it is expected to be heard by the end of the year. The lawsuit alleges that StubHub should have provided refunds to its consumers after the company purchased Viagogo. However, the plaintiffs have failed to prove that the lawsuit was motivated by greed and failed to follow a consumer-friendly policy. They also cite the failure of other companies to disclose information about their financial state.
The lawsuit states that StubHub rescinded its FanProtect guarantee, which allows ticket sellers to offer refunds before the event.
The company also cited a UK Competition and Markets Authority order that prevented StubHub from acquiring Viagogo Entertainment. The case seeks monetary damages and restitution remedies for consumers. Although a preliminary ruling is pending, it is not yet clear whether the company will settle.
The case against StubHub was filed in Florida federal court in 2016. Spotlight’s attorney argued that StubHub’s response was inadequate, which led to the lawsuit’s dismissal. The case was later dismissed when the plaintiffs failed to show that the tickets were invalid. The plaintiffs sought refunds of the ticket prices if they could not access the event. In addition, a decision on the pending complaint was made in late June 2017.
StubHub has not yet responded to the claims of its customers.
As of March 20, 2020, StubHub is expected to file a motion to compel arbitration and a summary judgment motion to compel the parties to meet in a case management conference. During the case management conference, class counsel will need to gather expert witnesses to explain the nature of the contracts between the seller and the buyer. Further, StubHub must provide proof that the tickets were sold through fraud.
Another issue in the StubHub lawsuit is the company’s refusal to honor refund policies. The company is facing a multi-million dollar class-action suit for refusing to provide a refund. Thousands of buyers nationwide are suing StubHub, claiming that they were not properly compensated for their purchases. Fortunately, most people are not filing the suit, but StubHub should be held accountable.
The lawsuit was filed by McMillan, a California woman who is an avid music fan.
She purchased tickets on StubHub after she learned that she had to be at the concert because the COVID virus had infected her. As a result, she was unable to refund all of her ticket buyers before the COVID outbreak. In addition to this, she was unable to receive any cash refunds, and she was prevented from merging with Viagogo, which purchased StubHub in February 2020.