Key Takeaways
- • StubHub CEO Eric Baker faces a $5 million class-action lawsuit filed in the Southern District of New York after a CBC investigation revealed he is part-owner and managing director of Andro Capital, a hedge fund engaged in mass ticket scalping on StubHub's platform.
- • SEC filings show StubHub has paid fees to Andro Capital, covered its ticket-management costs, and entered into agreements with Colloquy Capital (an Andro affiliate) to provide financing and referrals to large-scale professional ticket resellers—creating a direct financial incentive conflict with its stated mission as a "neutral marketplace for fans."
- • The lawsuit alleges StubHub has misrepresented itself to consumers; plaintiff Louis Sanquini claims he would not have purchased tickets had he known about the company's ownership stake in a professional ticket scalper operating on the same platform.
- • Industry research cited in the complaint indicates 70-80% of tickets on secondary resale platforms are sold by professional scalpers rather than individual fans, making StubHub's undisclosed financial interest in Andro Capital particularly material to consumer purchasing decisions.
- • Baker disclosed his Andro Capital ties in SEC filings, but StubHub did not independently inform consumers or provide transparent disclosure of the relationship in its marketing or terms of service.
Summary
StubHub and its CEO Eric Baker are facing a proposed class-action lawsuit alleging undisclosed conflicts of interest related to ticket scalping operations. A Canadian Broadcasting Corporation (CBC) investigation revealed that Baker is a part-owner and managing director of Andro Capital, a hedge fund that has engaged in mass resale of tickets at markups through StubHub's platform since at least 2008. The lawsuit, filed by ticket purchaser Louis Sanquini on July 14, 2026, seeks $5 million in damages and was filed in the U.S. District Court for the Southern District of New York.
The core allegation centers on StubHub's failure to disclose material conflicts of interest to its user base. According to the complaint, StubHub explicitly markets itself as a "neutral marketplace for fans to buy and sell tickets," but SEC filings reveal the company has established direct financial relationships with Andro Capital and its affiliate Colloquy Capital. StubHub has paid fees to the hedge fund, subsidized its ticket-management costs, and entered into agreements providing Colloquy Capital with short-term financing and referrals to other professional ticket resellers who list inventory on StubHub. These arrangements create a structural incentive for StubHub to facilitate higher volumes of professional scalping activity rather than maintain a genuine peer-to-peer marketplace.
While Baker disclosed his Andro Capital ownership in SEC filings, the complaint argues this disclosure was insufficient and did not reach StubHub's consumer audience. Sanquini states he would not have purchased tickets through the platform had he known about StubHub's financial stake in professional scalping operations. The complaint cites industry research showing that 70-80% of tickets available on secondary resale platforms originate from professional scalpers rather than individual fans, making the undisclosed relationship particularly material to consumer purchasing decisions and pricing expectations.
The lawsuit represents a significant regulatory and reputational risk for StubHub at a time when secondary ticket resale platforms face increasing scrutiny over transparency and anti-competitive practices. As of the filing date, neither StubHub nor Baker had publicly responded to the allegations.
The core allegation centers on StubHub's failure to disclose material conflicts of interest to its user base. According to the complaint, StubHub explicitly markets itself as a "neutral marketplace for fans to buy and sell tickets," but SEC filings reveal the company has established direct financial relationships with Andro Capital and its affiliate Colloquy Capital. StubHub has paid fees to the hedge fund, subsidized its ticket-management costs, and entered into agreements providing Colloquy Capital with short-term financing and referrals to other professional ticket resellers who list inventory on StubHub. These arrangements create a structural incentive for StubHub to facilitate higher volumes of professional scalping activity rather than maintain a genuine peer-to-peer marketplace.
While Baker disclosed his Andro Capital ownership in SEC filings, the complaint argues this disclosure was insufficient and did not reach StubHub's consumer audience. Sanquini states he would not have purchased tickets through the platform had he known about StubHub's financial stake in professional scalping operations. The complaint cites industry research showing that 70-80% of tickets available on secondary resale platforms originate from professional scalpers rather than individual fans, making the undisclosed relationship particularly material to consumer purchasing decisions and pricing expectations.
The lawsuit represents a significant regulatory and reputational risk for StubHub at a time when secondary ticket resale platforms face increasing scrutiny over transparency and anti-competitive practices. As of the filing date, neither StubHub nor Baker had publicly responded to the allegations.
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