Professional Sports Authenticator faces US class action over alleged grading fraud

A proposed class action lawsuit was filed on July 28 in the U.S. District Court for the District of Maryland against Professional Sports Authenticator (PSA) and its parent company Collectors Holdings. Plaintiff Nicholas Funk seeks to represent a nationwide group of customers who paid PSA grading fees.

The 188‑page complaint alleges that PSA misled collectors by marketing its grading process as objective, consistent and independent while actually relying on subjective “eye‑appeal” evaluations. It claims the grades can vary between submissions, creating financial incentives for collectors to repeatedly submit cards in hopes of higher grades. The lawsuit also points to possible conflicts of interest within Collectors Holdings, which runs vault storage, pricing tools and marketplace services, and alleges that PSA’s first certification involved a knowingly altered T206 Honus Wagner card.

PSA has not yet responded to the complaint and the class action has not been certified. Because PSA grades heavily influence the market value of Pokémon, sports and other trading cards, the case could have significant repercussions for the multi‑billion‑dollar trading‑card industry.