FIFA Pushes For Sanctions in World Cup Price-Fixing Class Action

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FIFA filed a very strong reply in support of joint motions for sanctions on Monday against two fans and their attorneys in a proposed class action lawsuit that alleged FIFA engaged in a price-fixing conspiracy to inflate World Cup ticket prices. 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.

In its searing response to the fans’ previous sanctions opposition, FIFA claims that the case relies on misconduct of the fans’ attorneys and manipulation of the facts at hand and that “Sanctions are warranted because Plaintiffs’ action is objectively frivolous, legally unreasonable, and factually baseless.”

FIFA also said that the fanfare built around the claim is based more on the fans’ belief about the corruption of the organization rather than based in fact.

“Plaintiffs’ opposition principally engages in hand-waving and innuendo meant to distract from the fact that their claims were built upon fabrications,” FIFA said. “The gist of their argument appears to be that because they believe FIFA is corrupt, their counsel was entitled to bring a frivolous legal theory, ginned up on false assertions about what various laws and rules say, on behalf of plaintiffs who, in actuality, lack standing to pursue their claims.”

Plaintiffs and soccer fans Vicki Palivos and George Kleanthis filed their proposed class action lawsuit in September alleging that FIFA told consumers that tickets to the 2014 World Cup in Brazil were sold out in order to significantly mark up ticket prices as part of a conspiracy with resellers. The fans alleged that the companies caused ticket prices to be artificially inflated when the tickets were bundled together with hotel rooms, preferred parking and other amenities as part of a hospitality package, costing consumers several times the actual face value of the tickets.

FIFA and the resellers named in the claim filed a joint motion for sanctions last month, claiming that the plaintiffs ignore parts of the law that actually allow FIFA’s alleged misconduct, and they also do not belong to the Class they intend to represent. The fans shot back at FIFA, saying that “corruption and scandal are rampant at FIFA” and claimed that FIFA itself should be sanctioned as a result of its sanctions request.

FIFA dug its heels in further in Monday’s support for sanctions, saying the case relies on obvious misrepresentations of law and that the fans were not personally affected by the violations they allege.

FIFA claims that, according to records, Kleanthis purchased eight tickets at face value to two matches, despite claiming that he was forced to buy the tickets as part of hospitality packages. FIFA says that Pavilos never even attempted to purchase tickets using official channels.

Since neither of the fans purchased a hospitality package according to FIFA, there is no way the fans can represent a Class of fans who did buy the packages, the sports organization said. In all, FIFA claims there are so many deficiencies in the lawsuit that it should not have been filed in the first place.

“Nothing obliged plaintiffs’ counsel to misrepresent the laws and rules they chose to rely upon in an effort to gin up treble-damages claims in their complaint,” FIFA stated. “Nothing obliged plaintiffs’ counsel to file suit when the one plaintiff who actually tried to purchase face-value match tickets successfully purchased eight tickets to two separate matches. And nothing obliged plaintiffs’ counsel to bring a case.”

FIFA has not specified in their filings what sanctions they are seeking, but have said they are looking to recover the cost of attorneys’ fees for the lawsuit.

In addition to the support for sanctions sought by FIFA, there are other motions currently pending in the lawsuit, including a motion to dismiss the suit for failure to state a claim, a push to stay discovery and motions to dismiss certain claims due to lack of jurisdiction over resellers who are not based in the U.S.

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