StubHub and its CEO, Eric Baker, are facing a proposed $5-million class-action lawsuit in the U.S. The suit, filed by ticket buyer Louis Sanquini, alleges deceptive practices and fraudulent misrepresentation, claiming StubHub misled consumers by promoting itself as a "marketplace for fans."

This lawsuit follows reports that Baker disclosed in U.S. Securities and Exchange Commission filings that he runs Andro Capital, a hedge fund that resells millions of dollars worth of sports and concert tickets on StubHub. Sanquini argues that consumers were unaware of this conflict of interest and believed StubHub was a neutral platform.

Consumers are entitled to transparency, according to lead counsel Kevin Steinberg. The lawsuit contends that had this conflict been disclosed, consumers would not have paid the same prices or accepted the same terms. StubHub has declined to comment on the legal matter, and none of the allegations have been proven in court. The company has also faced scrutiny over thousands of cancelled World Cup ticket orders.