PSA and its parent company Collectors Holdings, Inc. have been sued in a class lawsuit by Baltimore man Nicholas Funk, alleging fraudulent practices and RICO violations.
The 188-page lawsuit, filed in Northern Division U.S. District Court for the District of Maryland on July 28, 2026, is filed by a plaintiff who submitted cards for grading via an intermediary, which the suit alleges exempts him and similar members of the proposed class from arbitration clauses and class action waivers in the agreements that PSA clients that submit cards for grading directly must sign.
The suit alleges that PSA has “undisclosed error rates, inconsistent grades, and distorted population reports,” and that PSA’s relationships with other Collectors Holdings companies allows them to profit from PSA’s activities. This organized activity, the suit alleges, constitutes RICO violations.
The plaintiffs are seeking a permanent injunction against PSA continuing to engage in the alleged fraudulent activity and deceptive conduct. They are also seeking restitution, interest, punitive damages, attorneys’ fees and other relief.
PSA is grading record numbers of cards in the midst of red-hot sports card and TCG markets (see “Grading Submission Backlog“).
Source: ICV2
