StubHub CEO Eric Baker is facing a $5 million class-action lawsuit following revelations that he is a part owner of Andro Capital, a hedge fund involved in large-scale ticket reselling at marked-up prices on StubHub's platform. The lawsuit, filed by ticket buyer Louis Sanquini in the Southern District of New York, argues that StubHub and Baker failed to disclose this connection and misrepresented the company as a neutral marketplace for fans, which led Sanquini and others to purchase tickets under false pretenses.

Baker's ties to Andro Capital were disclosed in filings with the U.S. Securities and Exchange Commission, which also show StubHub paying fees to the hedge fund and assisting in managing its ticket inventory. Further, StubHub has agreements with Colloquy Capital, affiliated with Andro, offering financing and referrals to major ticket resellers utilizing StubHub’s marketplace. These financial interconnections raise concerns about the platform's integrity and whether its incentives align with consumers' interests.

The complaint highlights a broader issue in ticket reselling, noting industry research that estimates 70% to 80% of tickets on secondary markets are sold by scalpers rather than genuine fans. With StubHub holding a financial stake in a professional ticket scalper, there is an inherent conflict, as the company may be motivated to prioritize relationships with resellers like Andro Capital, potentially inflating prices and harming average customers.

StubHub and Eric Baker have yet to respond publicly to the lawsuit. This development compounds StubHub’s recent legal troubles, including a $10 million settlement for hiding fees during the 2025 NFL schedule release and an ongoing investigation into the mass cancellation of World Cup tickets, which affected thousands of fans financially. These issues collectively challenge StubHub’s reputation and question its role in the ticket resale market.