Professional Sports Authenticator faces lawsuit and grading backlog

A proposed class‑action lawsuit filed on July 28 in the U.S. District Court for Maryland accuses Professional Sports Authenticator (PSA) of misleading customers about its card‑grading methods and profiting from repeat submissions. Plaintiff collector Nicholas Funk alleges fraud, negligent misrepresentation, breach of contract and conflicts of interest involving PSA’s parent company Collectors Holdings, including claims that PSA caps the number of Gem Mint 10 grades and graded a trimmed T206 Honus Wagner card despite its own standards.

At the same time, PSA’s backlog of ungraded trading cards has risen to more than 12 million, up from a reduced 11 million, disrupting cash flow for collectors and businesses that rely on timely grades. Industry leaders, including Goldin Auctions CEO Ken Goldin, warned that the backlog is “devastating to the industry,” forcing sellers to seek alternatives and inflating service fees. The combined legal and operational challenges threaten PSA’s role as a major source of revenue in the hobby.