Fans Strike Back in FIFA World Cup Price-Fixing Class Action Lawsuit

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FIFA fans struck back against the Federation Internationale Football Association’s argument that lead plaintiffs should be sanctioned for starting a class action alleging the international soccer association conspired to fix ticket prices for the World Cup.

Lead plaintiffs Vicky Palivos and George Kleanthis, alleged in their class action lawsuit that FIFA conspired with their authorized sub-agents within the United States to inform customers that tickets were almost “sold out” but tickets could be obtained for a premium price. The class action further claims that even though FIFA’s governing rules and regulations prohibit the sale of tickets for more than their face value, the plaintiffs and proposed Class Members purchased World Cup tickets at a steep markup.

In turn, the defendant FIFA, filed a motion to dismiss the lawsuit arguing it was “frivolous” because the association was allowed to set their own prices. FIFA also argued that they did not violate antitrust laws or other laws by selling tickets through the hospitality packages. The world soccer organization asked the court to halt discovery in the case until a decision was reached concerning its motion to dismiss the claims.

According to documents filed with the court, the class action lawsuit is not frivolous, as evidenced by alleged widespread corruption in FIFA that recently lead to a criminal indictment in the U.S. “The reality is that corruption and scandal are rampant at FIFA,” alleged the plaintiffs in their opposition to FIFA’s motion to dismiss. “This absolutely taints defendants’ claim that plaintiffs’ complaint alleging identical conduct is frivolous, lacking any basis in fact, and deserving of the extreme sanctions requested,” they continue.

“Between the arrests, countless allegations, indictments, and even termination of top officials by FIFA’s own governing body,” argue the plaintiffs pointing out that FIFA’s Secretary General was dismissed after being associated with a scheme to resell tickets on the back market for profit for the next World Cup, “there is simply no plausible argument to be made that FIFA and its co-defendants are nothing but innocent purveyors of millions upon millions of dollars’ worth of World Cup tickets sold above face value to United States citizens.”

“All available direct evidence and reasonable inferences lead plaintiffs to allege that the defendants conspired to profit from the illegal manipulation of the market for 2014 World Cup tickets through the sale of hospitality packages for exorbitant prices relative to their contents,” argued the plaintiffs in their motion. “As plaintiffs have alleged, defendants conspired to manipulate the supply and demand for tickets by falsely declaring that individual tickets were sold out and directing fans to the aforementioned [hospitality packages],” concluded the class action plaintiffs.

The plaintiffs are represented by Martin A. Little and Michael R. Ernst of Jolley Urga Woodbury & Little and Will A. Lemkul and Morris Sullivan Lemkul & Pitegoff LLP.

The FIFA World Cup Price-Fixing Class Action Lawsuit is Vicki Palivos, et al. v. Federation Internationale Football Association, Case No. 2:15-cv-01721, in the U.S. District Court for the District of Nevada.

UPDATE: On Mar. 14, 2016, FIFA filed a very strong reply in support of joint motions for sanctions against two fans and their attorneys. FIFA accused the plaintiffs and counsel of fabricating an argument without merit and says the organization is the victim of the issue at hand, not the perpetrator.