On November 22, 2021, U.S. District Court Judge Haywood S. Gilliam, Jr. denied Stubhub’s attempt to force customers who were allegedly denied refunds during the COVID-19 pandemic to arbitrate their California claims.
Wittels McInturff Palikovic initially filed a class action lawsuit against StubHub in June 2020, alleging that once the COVID-19 pandemic hit, StubHub reneged on its signature “FanProtect™ Guarantee,” which promised customers full refunds for cancelled events. The complaint alleges that StubHub changed its longstanding guarantee without warning, instead offering StubHub credit only, while pocketing customers’ money.
WMP’s lawsuit was consolidated with others alleging similar claims against StubHub, and in November 2020, the court appointed WMP partner Tiasha Palikovic co-lead interim class counsel for the multi-district litigation. In February 2021, StubHub moved to send all Plaintiffs’ claims to arbitration, arguing its user agreement required it.
Among the Court’s rulings on StubHub’s motion, Judge Gilliam found the arbitration agreement was unenforceable as to Plaintiffs’ California claims. Those claims will continue to proceed in litigation.
This ruling is an important victory for the many consumers damaged by StubHub’s broken promises as well as consumers’ rights generally to exercise their constitutional right to use the U.S. court system.
For a copy of the ruling, click here. For a copy of the Complaint, click here.
For more information or to join the case, contact us.