Soccer Fans: FIFA Distorts Class Action Claims in Motion to Dismiss

A pair of fans who filed a proposed class action lawsuit against FIFA and its resellers for their alleged conspiracy to inflate ticket prices to the 2014 World Cup in Brazil filed their opposition to FIFA’s motion to dismiss the suit, saying the organization has falsely characterized their case.

Plaintiffs Vicki Palivos and George Kleanthis say they understand that FIFA has the right to set their own prices for the events it holds and are not contesting that right. However, they say they are contesting the alleged conspiracy between FIFA and authorized ticket resellers that they claim violates the Racketeer Influenced and Corrupt Organizations Act (RICO) and federal antitrust statutes.

“Plaintiffs do not allege that FIFA set the prices of the tickets at unlawfully high prices,” Pavilos and Kleanthis state in the claim. “Rather, plaintiffs allege that defendants illegally collaborated in a price-fixing scheme and conspiracy to inflate the price of the tickets.”

The fans filed the lawsuit in September 2015 alleging that FIFA told consumers the tickets were nearly sold out in order to get them to pay a premium by purchasing tickets at a significant markup.

Last month, FIFA and the other defendants named in the lawsuit – Cartan Tours Inc., Infront Sports and Media, Match Services AG, Match Hospitality AG, and SportsMark Management Group Ltd.- asked the court to dismiss the lawsuit. The fans accused the defendants of unlawfully inflating prices by creating hospitality packages where tickets were bundled with hotel rooms, preferred parking and other amenities, with the packages costing several times the face value of the tickets.

FIFA claimed the lawsuit was “frivolous” and said the fans’ claims were not supported, and also argued that the organization did not violate antitrust laws or other laws by selling tickets through the hospitality packages.

Palivos and Kleanthis shot back at FIFA, saying the matter at hand was the organizations’ conspiracy with its resellers to falsely claim that tickets had been sold out to the event, thus forcing fans to buy the hospitality packages. They argue that dismissing the case would be premature, and that federal precedent places a high bar on dismissing suits before the discovery process- a bar that FIFA has allegedly not yet met.

The fans cited the Twombly decision involving antitrust law that a complaint “does not need factual allegations to survive” and say the burden for dismissal is even higher when considering allegations involving RICO and antitrust suits, where cases rely a great deal on the information revealed in discovery.

The plaintiffs asked the court to keep their claims of unjust enrichment and disgorgement of profits alive. They also asked for a chance to amend their complaint to fix any deficiencies if the court ruled in FIFA’s favor and decided to dismiss the case.

The plaintiffs are represented by Martin A. Little and Michael R. Ernst of Jolley Urga Woodbury & Little Will A. Lemkul of 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. 4, 2016, fans struck back against FIFA’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.

UPDATE 2: 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.