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StubHub Sued for Refunds on Shows Canceled Due to Coronavirus

April 15, 2020, 2:17 PM

StubHub Inc. is facing a proposed class action by ticket purchasers who allege the company is refusing to provide refunds for events canceled due to the coronavirus.

By failing to reimburse ticket buyers the company violated its “FanProtect Guarantee,” which pledged to provide a refund “if your event is canceled and not rescheduled,” the complaint alleges.

StubHub announced April 10, 2020, that it would no longer offer refunds for canceled events but would instead “add a coupon worth 120% of your original order to your StubHub account,” according to the complaint.

Named plaintiff Jason Alcaraz purchased tickets to see Flogging Molly perform at Harrah’s Southern California Resort in Valley Center, Calif. The purchase was covered by StubHub’s FanProtect Guarantee, according to the complaint.

But when Harrah’s canceled the concert due to Covid-19, StubHub refused to provide Alcaraz a refund and has instead offered a 120% credit to his account, the complaint alleges.

Other suits seeking refunds due to Covid-19-related cancellations have been filed against airlines, universities, team parks, and gyms.

Causes of Action: California Consumers Legal Remedies Act, California Unfair Competition Law, California False Advertising Law, breach of express warranty, negligent misrepresentation, fraud, unjust enrichment, breach of contract.

Relief: Declaratory and injunctive relief, damages, attorneys’ fees and costs.

Class Size: “Millions of customers” in a nationwide class and California subclass.

Response: StubHub didn’t immediately respond to request for comment.

Attorneys: Bursor & Fisher PA represents the plaintiffs.

The case is Alcaraz v. StubHub Inc., N.D. Cal., No. 20-cv-02595, 4/14/20.

To contact the reporter on this story: Peter Hayes in Washington at PHayes@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Nicholas Datlowe at ndatlowe@bloomberglaw.com

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