A proposed class-action lawsuit accuses Professional Sports Authenticator of misleading customers about how it grades trading cards and how it makes money. PSA is one of the biggest names in the hobby. The 188-page complaint targets its grading methods, its handling of repeat submissions and its relationship with sister businesses under the same parent company.
Collector Nicholas Funk filed July 28 in the U.S. District Court for the District of Maryland, seeking to represent everyone who paid PSA to grade cards. The complaint names PSA and parent company Collectors Holdings on claims of fraud, negligent misrepresentation, breach of contract and unjust enrichment, plus violations of federal and Maryland consumer protection laws.
PSA markets grading as objective, consistent and independent. Funk alleges the reality is softer, with grades turning on subjective judgments like a card’s “eye appeal.” The complaint also claims PSA profits when collectors resubmit the same card chasing a better grade, since every resubmission is another fee.
Then there’s the corporate structure. Collectors Holdings owns businesses tied to card storage, pricing and marketplaces. Funk argues those create financial conflicts that customers never get told about.
Questions about PSA’s grading history
The sharpest allegation reaches back to PSA’s first certified card, a T206 Honus Wagner. According to the complaint, the card had been trimmed. PSA’s own published standards say trimming should disqualify a card from receiving a grade. The lawsuit alleges PSA knew and graded it anyway, and that the certification still stands today.
The filing further claims PSA caps how many Gem Mint 10 grades certain cards receive, keeping the population low to protect market values. It also questions how graders get selected and trained, arguing customers know almost nothing about who handles their cards.
PSA has not responded to the complaint. None of the allegations have been proven, and the court hasn’t ruled on whether the case proceeds as a class action.