StubHub Hit With $5M Lawsuit Over COVID-19 Refund Policy

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Ticketing resale platform StubHub has just been hit with a $5 million dollar class-action lawsuit due to their coronavirus refund policy. It was filed by a Wisconsin man named Matthew McMillan who was not refunded for a canceled NHL game.

According to Billboard, McMillan’s lawsuit accuses StubHub of breach of contract and negligent misrepresentation. He asks the U.S. District Court in Wisconsin to prohibit the company from giving coupons worth 120% of the purchase price. Instead, he urges for the reinstatement of their prior refund policy.

McMillan states that he purchased two $120 tickets on Stubhub to attend an NHL game in March. Once the NHL announced on March 12 that all of its events would be canceled, he sought a refund. The ticketing resale company claimed that the event had only been postponed. Although he purchased his tickets with a money-back guarantee, he didn’t receive a refund; he obtained a coupon instead.

On March 12th, StubHub president Singh Cassidy sent an email to consumers stating that although they would still allow refunds, coupons would also be offered. Later, on March 25th, that policy was changed; instead, canceled events can be refunded or credited. Eventually, that policy was amended on March 30th. Customers were only allowed to receive a 120% credit due to COVID-19‘s effect on the touring industry. McMillan claims that Stubhub customers neither agreed nor were informed about this new policy.

StubHub has yet to comment on the lawsuit.

Stay tuned for more updates on this story.