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StubHub's 'marketplace for fans' is run by a mass scalper, SEC filings reveal

https://www.cbc.ca/news/world/stubhub-ceo-class-action-scalping-9.7268987
51•b112•2h ago

Comments

darth_avocado•1h ago
> StubHub and its CEO, Eric Baker, have been hit with a proposed $5-million class-action lawsuit

This should be much higher. A class action lawsuit shouldn’t be worth less than what these people can make scalping a single Taylor Swift concert.

This just opens an opportunity for them to settle, admit no wrongdoing and then include a clause in the settlement that prevents further lawsuits.

gruez•34m ago
IANAL, but the exact language from the complaint was:

>WHEREFORE, Plaintiff, individually and on behalf of the Class, respectfully requests that this Court:

>...

>Award compensatory, statutory, and/or restitutionary damages, as applicable, in an amount to be determined at trial and that the aggregate amount in controversy across the whole class exceeds $5,000,000;

it doesn't say that the damages are capped at 5M, only that they're asking for at least 5M.

i_am_jl•1h ago
For StubHub to have insider dealing isn't so surprising, but I am shocked at how brazenly and openly it's occurring. Nothing covert or concealed, just the CEO of a marketplace openly admitting that they run a hedge fund that resells scalped goods on that marketplace while keeping other scalpers off the platform.
tailscaler2026•44m ago
welcome to america 2026. where it's not only encouraged but expected that you're lying, cheating, and stealing your way to the top.
gruez•33m ago
2026? As if stubhub/ticketmaster only materialized after trump2?
mistrial9•38m ago
no, it gets more layers.. a quick search says "Through its affiliate Colloquy Capital, StubHub helps bankroll other mass ticket scalpers by providing short-term financing based on expected future sales, further inflating the volume of professional resellers on the platform." (I have no direct knowledge of these participants)
xnx•40m ago
Scummy behavior, but customers are also tacitly endorsing high prices when they pay $1500 for a Taylor Swift (or name your artist) ticket.
gruez•29m ago
You're not entirely wrong, but the root issue is artists not charging the market clearing price for tickets. If you're selling something worth $1000 for $200, you shouldn't be surprised arbitrageurs pop up to take advantage.
eightysixfour•15m ago
> You're not entirely wrong, but the root issue is artists not charging the market clearing price for tickets.

Because there is value for the artist in maintaining the perception of accessibility.

badgersnake•13m ago
This argument has been made a lot on this site, mainly by people who don’t understand live music.
godsinhisheaven•7m ago
I understand the arguments against charging the market clearing price, but I do just think it would be very funny for Taylor Swift to sell out a concert charging $10k+ a ticket.
vjvjvjvjghv•36m ago
I don’t really understand the outrage over scalpers. Isn’t this just normal market behavior? Is a retailer that buys things and sells them with a markup a scalper?

People seem to be willing to pay crazy prices for events.

andrew_lettuce•21m ago
The outrage is over the apparent collusion between a platform that argues it only facilitates a fan-to-fan marketplace, and a hedge fund run by the platform's CEO that sells a massive volume of resale tickets. This is definitely not on the spirit of competition regardless of it's illegal or not
fecal_henge•19m ago
The ultimate customers would certainly pay more than the face price which is what the scalpers pay, yet the scalpers get all the tickets. This is abnormal market behaviour.
Brendinooo•17m ago
>Is a retailer that buys things and sells them with a markup a scalper?

If you bought all of the food then offered the food at 10x the prices, we'd be outraged with you, yes.

Stakes are lower because it's a luxury good, not food, but it's the same idea.

sdthjbvuiiijbb•14m ago
Yes it's rational market behavior. But it bothers people for such a blatantly worthless middleman to capture all consumer surplus for themselves while providing zero value.
sushid
nubinetwork•10m ago
We've known for years that ticketmaster scams their tickets on StubHub. Concerts selling out instantly, to only see tons of tickets on stub...

I'm sure if they get shut down, they'll just do it again under a different name, but they can't pretend it's a small handful of scalpers when they're the ones doing it themselves.

•
10m ago
It's not a simple buy/sell marketplace. There's no recourse for fans who purchase a confirmed ticket, only to find that the seller "doesn't have them" and see the same ticket relisted for higher if the price jumps. Stubhub prioritize these scalper relationships and doesn't meaningfully protect its buyers from getting screwed over.

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https://www.cbc.ca/news/world/stubhub-ceo-class-action-scalping-9.7268987
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