StubHub Call Recording Class Action Settlement To Be Rejected

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On Thursday, a California judge said he would reject a proposed $2 million settlement that would have resolved a class action lawsuit alleging StubHub Inc. illegally recorded telephone calls with customers.

At Thursday’s hearing, San Francisco Superior Court Judge Ernest Goldsmith expressed concern that just over 1,000 Class Members submitted claims, even though 69,000 people may have been entitled to benefits from the privacy class action settlement. He also took issue with the terms of the proposed settlement that would return $1 million to StubHub if the money was not claimed by Class Members.

StubHub’s attorneys defended the deal, arguing that the Class Members may not have felt they were injured by the recorded phone calls. They insist they took significant steps to notify the affected consumers about the pending StubHub class action settlement, such as sending emails and postcards to consumers who had called the company. Despite the notice, many consumers opted not to file claims for the StubHub class action settlement, the attorneys said.

Judge Goldsmith preliminarily approved the StubHub class action lawsuit in January. The judge suggested he should have reviewed the terms of the deal more carefully before granting preliminary approval to the call recording class action settlement.

Plaintiff Michael Saunders filed the privacy class action lawsuit against StubHub in January 2012, alleging that consumers who called StubHub had their phone calls recorded without their knowledge or consent. He says he contacted the company to purchase tickets for a sporting event, but was not notified that it was being recorded until he asked the customer service agent. He alleged StubHub’s conduct violated California’s Invasion of Privacy Act.

Class Members of the proposed StubHub class action settlement include anyone who called the ticket reseller from a cellular or cordless telephone while in California between Jan. 27, 2011 and Feb. 1, 2012.

StubHub is the world’s largest ticket marketplace. It was founded in 2000 and acquired by eBay in 2007. The company provides services for buyers and sellers of tickets for a variety of events, including sports, theater and music concerts.

More information about the StubHub privacy class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Eric Andrew Grover of Keller Grover LLP.

The StubHub Call Recording Class Action Lawsuit is Michael Saunders v. StubHub Inc., Case No. CGC12517707, in the Superior Court of California, County of San Francisco.