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Friday, January 17, 2020

StubHub accused of years-long racketeering scheme

Federal Court

By Marian Johns | Jan 8, 2020

Mortimerann
Mortimer

LOS ANGELES (Legal Newsline) – Spotlight Ticket Management alleges StubHub has violated federal and state law by underreporting commissionable transactions. 

Spotlight Ticket Management Inc. filed a complaint Dec. 20 in the U.S. District Court for the Central District of California Western Division against StubHub Inc. and Awin Inc., doing business as Awin Global Affiliate Network, alleging common law fraud, tortious interference, violation of the Federal RICO statute, breach of contract, unjust enrichment and violation of California law. 

Spotlight, which licenses software and hosts online ticket platforms used by American Express, alleges StubHub, which manages ticket inventories and data reporting, has been involved in "a years-long campaign" to "underreport and misrepresent commissionable transactions" owed to members of StubHub's affiliate network. Spotlight, who claims it has directed more than $84 million in sales to StubHub, also alleges StubHub interfered with its contract with American Express. 

"However, through a pattern of conduct, first involving its internal team and later through its external business partner Awin, StubHub defrauded Spotlight and other members of its affiliate program in order to drive StubHub’s sales while underreporting sales and underpaying commissions, and then engaging in retaliatory conduct towards Spotlight when Spotlight sought to correct this wrong," the suit states.

Spotlight seeks damages, a trial by jury, interest and all other just relief. It is represented by Ann Mortimer and Jason Kim of Hunton Andrews Kurth LLP in Los Angeles.

U.S. District Court for the Central District of California Western Division case number 2:19-CV-10791-DDP-JC

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