Josh Finkelman v. National Football League , 810 F.3d 187 ( 2016 )


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  •                                     PRECEDENTIAL
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    _______________
    No. 15-1435
    _______________
    JOSH FINKELMAN; BEN HOCH-PARKER
    On Behalf of Themselves and the Putative Class,
    Appellants
    v.
    NATIONAL FOOTBALL LEAGUE;
    NFL VENTURES, L.P.;
    NFL PROPERTIES, LLC; NFL VENTURES, INC.;
    NFL ENTERPRISES LLC
    _______________
    On Appeal from the District Court
    for the District of New Jersey
    (Civil No. 3-14-cv-00096)
    District Judge: Honorable Peter G. Sheridan
    _______________
    Argued October 8, 2015
    Before: FUENTES, SMITH, and BARRY, Circuit Judges
    (Opinion Filed: January 14, 2016)
    Bruce H. Nagel, Esq. [ARGUED]
    Robert H. Solomon, Esq.
    Greg M. Kohn, Esq.
    Andrew Pepper, Esq.
    Nagel Rice, LLP
    103 Eisenhower Parkway
    Roseland, NJ 07069
    Attorneys for Appellants
    Jonathan D. Pressment, Esq. [ARGUED]
    William Feldman, Esq.
    Haynes & Boone, LLP
    30 Rockefeller Center, 26th Floor
    New York, NY 10112
    Karen A. Confoy, Esq.
    Steven J. Daroci, Esq.
    Fox Rothschild LLP
    997 Lenox Drive, Building 3
    Lawrenceville, NJ 08648
    Attorneys for Appellees
    _______________
    OPINION OF THE COURT
    _______________
    2
    FUENTES, Circuit Judge:
    Many of us have felt the disappointment of wanting to
    attend a concert or athletic event only to discover that the
    event has sold out. When an artist or sports team is especially
    popular, the gap between the supply of tickets and the demand
    for those tickets can be enormous. Some people will be able
    to attend such an event; others will not.
    The Super Bowl is perhaps the ultimate example of an
    event where demand for tickets exceeds supply. The two
    named plaintiffs in this case, Josh Finkelman and Ben Hoch-
    Parker, wanted to attend Super Bowl XLVIII, which was held
    in New Jersey in 2014. Finkelman bought two tickets on the
    resale market, allegedly for much more than face price.
    Hoch-Parker—confronted with the high prices in that
    market—opted not to purchase any. Plaintiffs then brought a
    class action against the National Football League (“NFL”)
    and various affiliated entities in the District of New Jersey,
    alleging that the NFL’s ticketing practices for the Super Bowl
    violated New Jersey law.1 The District Court dismissed
    plaintiffs’ suit for failure to state a claim, and plaintiffs now
    appeal.
    We need not grapple with the meaning of New Jersey
    1
    The other defendants include NFL Ventures, L.P., NFL
    Properties, LLC, NFL Ventures, Inc., and NFL Enterprises
    LLC. Plaintiffs initially sued another defendant, NFL on
    Location, but later filed a stipulation voluntarily dismissing
    that defendant. (See Appellants’ Br. at 12 n.5.) We will refer
    to the defendants collectively as “the NFL.”
    3
    law in order to resolve this case. Our inquiry is more basic.
    Just as the realities of supply and demand mean that not
    everyone who wants to attend a popular event will be able to
    do so, federal courts, too, are not open to everyone who might
    want to litigate in them. Our courts are courts of limited
    subject matter jurisdiction, empowered by Article III of the
    Constitution to hear only “cases” and “controversies.” Over
    time, those words have come to signify certain minimum
    requirements that are necessary to establish constitutional
    standing. These requirements are unyielding. Plaintiffs who
    are able to establish them will be able to sue in federal courts;
    others will not.
    We conclude that neither Hoch-Parker nor Finkelman
    has constitutional standing to bring this case. Were we to
    decide otherwise, anyone who purchased a Super Bowl ticket
    on the resale market would have standing to sue in federal
    court based on nothing more than conjectural assertions of
    causation and injury. Article III requires more.
    I.     Background
    Plaintiffs rely on a rarely litigated New Jersey statute,
    N.J. Stat. Ann. § 56:8-35.1 (the “Ticket Law”), which appears
    in New Jersey’s Consumer Fraud Act. It says:
    It shall be an unlawful practice for a person,
    who has access to tickets to an event prior to the
    tickets’ release for sale to the general public, to
    withhold those tickets from sale to the general
    public in an amount exceeding 5% of all
    available seating for the event.
    4
    The Consumer Fraud Act permits private plaintiffs to
    sue any person who violates the Act and causes them to suffer
    ascertainable damages.2 Plaintiffs assert that the NFL’s
    method of selling tickets to Super Bowl XLVIII violated the
    Ticket Law and resulted in unjust enrichment.
    The New Jersey Legislature passed the Ticket Law in
    2002 as part of an effort to reform its statutes regulating ticket
    resale, more commonly known as “scalping.” New Jersey has
    regulated ticket resale since at least 1983.3 In the late 1990s,
    there was an effort to reexamine the effectiveness of these
    laws, leading to the creation of a gubernatorial Ticket
    Brokering Study Commission.4 Its mission was to “compare
    the impact of a regulated and deregulated ticket resale market
    on the cost and availability of tickets to New Jersey
    entertainment events” and to consider various proposed
    2
    N.J. Stat. Ann. § 56:8–19. As originally drafted, the Act
    empowered only the New Jersey Attorney General to sue to
    enforce its provisions. The Legislature amended the statute in
    1971 to permit private suits, but required private plaintiffs
    (unlike the Attorney General) to prove that they suffered an
    ascertainable loss caused by a defendant’s misconduct. See
    Bosland v. Warnock Dodge, Inc., 
    964 A.2d 741
    , 747–48
    (N.J. 2009).
    3
    J.A. Vol. II at 203–04, 208–09 (N.J. Dep’t of L. & Pub.
    Safety, Div. of Consumer Affairs, Report to Governor
    Christine Todd Whitman on Access to Entertainment in New
    Jersey (Apr. 7, 1997)).
    4
    J.A. Vol. II at 171–200 (Ticket Brokering Study Comm’n,
    Ticket Broker Report (Oct. 31, 2001)).
    5
    reforms.5
    The Commission heard two days of testimony from a
    dozen witnesses before publishing its final report in October
    2001. It found that, “[i]n a typical year, 90% to 95% of
    events in New Jersey do not sell out,” but getting tickets to the
    “premium events” that do sell out “is not easy.”6 The
    Commission focused heavily on “hold-backs” of tickets by
    event     organizers,      concluding     that    “[h]old-backs
    disproportionately affect the general public’s opportunity to
    obtain tickets in favor of privileged insiders,” and that the
    practice should be “eliminated or limited by statute or
    regulation.”7 The Commission therefore recommended new
    legislation to “[l]imit the number of tickets which can be held
    back from sale to the general public to 5 percent of the
    available seating in any venue or performance.”8 The
    Legislature took up the Commission’s suggestion, and
    Governor Whitman signed the bill enacting the Ticket Law on
    January 8, 2002.9
    Since the Ticket Law’s passage, very few courts have
    grappled with its meaning. Indeed, the parties point to only
    one case in which a New Jersey state court has interpreted the
    5
    
    Id. at 173.
     6
    
    Id. at 175.
     7
    
    Id. at 197.
     8
    
    Id. at 191.
     9
    2001 N.J. Laws 394.
    6
    Law.10
    A.      Factual Allegations
    Super Bowl XLVIII took place at MetLife Stadium in
    East Rutherford, New Jersey on February 2, 2014.11 Plaintiffs
    allege that the NFL distributed 99% of Super Bowl tickets to
    NFL teams and League insiders.12 Of that amount, 75% of
    tickets allegedly went to teams, with 5% going to the host
    team, 17.5% going to each team playing in the Super Bowl,
    and 35% going to the remaining teams in the League. The
    remaining 25% of tickets are said to have been distributed to
    “companies, broadcast networks, media sponsors, the host
    committee and other league insiders.”13 Only about 1% of
    Super Bowl tickets were available for purchase by members
    of the general public, and the only way for someone to obtain
    one of those tickets was to participate in a League-sponsored
    lottery.14 In order to acquire a ticket in the lottery, a person
    10
    Harvey v. GSAC Partners, Inc., No. L-736-03 (N.J. Super.
    Ct. Law Div., Monmouth Cnty. Mar. 21, 2003).           See
    J.A. Vol. II at 155–65 (a copy of the Harvey opinion).
    11
    First. Am. Compl. (J.A. Vol. II at 76–92) ¶ 17. In
    resolving an appeal from the grant of a motion to dismiss, we
    accept all factual allegations in the complaint as true and draw
    all reasonable inferences in plaintiffs’ favor. Hansler v.
    Lehigh Valley Hosp. Network, 
    798 F.3d 149
    , 152 n.2
    (3d Cir. 2015).
    12
    First Am. Compl. ¶ 18.
    13
    
    Id. ¶¶ 18–19.
     14
    
    Id. ¶¶ 1,
    18.
    7
    had to (i) enter by the deadline, (ii) be selected as a winner,
    and (iii) choose to actually purchase a ticket.15
    Neither Hoch-Parker nor Finkelman entered the NFL’s
    ticket lottery. Instead, on December 30, 2013, Finkelman
    purchased two tickets to the Super Bowl in the resale market
    at a price of $2,000 per ticket (which he alleges was well in
    excess of the tickets’ $800 face price).16 Hoch-Parker wanted
    to purchase five Super Bowl tickets for himself and his
    family, hoping to pay no more than $1,000 per ticket.17 He
    decided not to purchase any when, after researching the
    availability of tickets between November and December of
    2013, the only tickets he could find were for $4,200 (or
    more).18
    B.     Procedural History in the District Court
    Finkelman filed a putative class action against the NFL
    in January 2014 in the District of New Jersey. One month
    later, he filed an amended complaint that added several
    15
    Appellees’ Br. at 34 n.13.
    16
    First. Am. Compl. ¶¶ 31–32. The $800 figure appears on
    page 11 of appellants’ opening brief. As the NFL points out,
    the First Amended Complaint does not actually allege the face
    price of tickets to Super Bowl XLVIII. (Appellees’ Br.
    at 11 n.2.)
    17
    First. Am. Compl. ¶¶ 33–34.
    18
    
    Id. ¶¶ 34–35.
    The First Amended Complaint states that
    Hoch-Parker searched for tickets in 2012, but this is clearly a
    scrivener’s error.
    8
    defendants and identified Hoch-Parker as a second named
    plaintiff.
    The District Court granted the NFL’s motion to
    dismiss the complaint—with prejudice—on January 20, 2015,
    in an oral decision read into the record.19 Four aspects of its
    decision merit further discussion here.
    First, the District Court concluded that plaintiffs failed
    to plead a viable claim under the Ticket Law. It reasoned that
    the NFL did not “withhold” any tickets to the Super Bowl
    within the meaning of the Law, but rather “distributed or
    allocated [all tickets] according to [its] existing system.”20 It
    also determined that the Ticket Law’s 5% limitation on
    withholding tickets “applies solely to tickets that are intended
    for release to the general public.”21 At most, that portion was
    the 1% of tickets sold through the NFL’s lottery—and none of
    those tickets were withheld.22 Consequently, the District
    Court decided that the NFL’s ticketing practices did not run
    afoul of the Ticket Law.
    Second, the District Court concluded that Finkelman
    failed to plead causation under the New Jersey Consumer
    Fraud Act. It reasoned that Finkelman’s decision not to enter
    19
    See J.A. Vol. I at 31–41. The District Court entered an
    order granting the NFL’s motion to dismiss on January 21,
    2015. 
    Id. at 3.
     20
    
    Id. at 38:2–4.
     21
    
    Id. at 38:5–7.
     22
    
    Id. at 38:23–39:3.
    9
    the NFL’s ticket lottery precluded him from proving causation
    because he could not demonstrate that he suffered any injury
    resulting from the NFL’s alleged misconduct.23 The District
    Court stated that it would be “unreasonable” for Finkelman to
    recover under the Act because he “failed to avail himself of
    the very mechanism . . . whereby his harm would have been
    avoided”—i.e., entering the lottery and possibly winning a
    face-price ticket.24 The District Court viewed the causation
    issue as a fatal pleading defect under the state statute,
    although it noted that Finkelman’s failure to enter the NFL
    ticket lottery raised “clear standing issues” under Article III.25
    Moreover, the District Court was skeptical that
    Finkelman would be able to show causation even if he had
    entered the lottery and lost. It noted that the tickets
    Finkelman purchased on the secondary market might well
    have been sold to him by a lottery winner who purchased
    them at face price. The District Court stated that, if this were
    true, it would be “hard to discern any wrongdoing on the part
    of the NFL that could have served as a cause of harm of
    which Finkelman now complains.”26
    Third, the District Court concluded that Hoch-Parker
    23
    
    Id. at 39:19–22.
     24
    
    Id. at 39:22–25.
     25
    
    Id. at 36:9–13.
     26
    
    Id. at 40:15–18.
    On appeal, Finkelman asserts that this
    scenario is impossible because the NFL requires lottery
    winners to pick up their tickets in person. (Appellants’ Br.
    at 17 & n.8.)
    10
    lacked Article III standing. In its view, having chosen not to
    purchase any Super Bowl tickets, Hoch-Parker could not
    show that he suffered any harm “beyond pure speculation or
    the merely hypothetical.”27
    Fourth, the District Court dismissed plaintiffs’ unjust
    enrichment claim. It reasoned that, as a quasi-contractual
    remedy, unjust enrichment requires a “sufficiently direct
    relationship” between the alleged wrongdoer and the
    plaintiff.28 Here, by contrast, the relationship between the
    plaintiffs and the NFL was “too ambiguous, remote or
    attenuated” for plaintiffs’ unjust enrichment claim to be
    viable.29
    II.      Appellate Jurisdiction and Standard of Review
    This is a diversity suit brought by plaintiffs under the
    Class Action Fairness Act.30 This Court has appellate
    jurisdiction over the final judgment of the District Court
    27
    J.A. Vol. I at 35:21–23.
    28
    
    Id. at 41:8–11.
     29
    
    Id. at 41:12–16.
     30
    28 U.S.C. § 1332(d)(2)(A).
    11
    under 28 U.S.C. § 1291.31 The District Court entered an order
    dismissing the case on January 21, 2015, and plaintiffs filed a
    notice of appeal on February 13, 2015.32
    The Court’s review of a decision dismissing a
    complaint is plenary.33
    III.      Article III Standing
    The question we confront is whether plaintiffs have
    alleged facts which, if true, would be sufficient to establish
    Article III standing.
    We begin by noting that our inquiry is more searching
    than the one originally contemplated by the parties. In its
    principal brief, the NFL asked this Court to affirm the District
    Court’s dismissal of Hoch-Parker’s claims on standing
    grounds, but, with respect to Finkelman, focused exclusively
    31
    Of course, notwithstanding the presence of statutory
    appellate jurisdiction, our conclusion that the named plaintiffs
    lack Article III standing means that we do not have subject
    matter jurisdiction to reach the merits of plaintiffs’ claims.
    See, e.g., Steel Co. v. Citizens for a Better Env’t, 
    523 U.S. 83
    ,
    101–02 (1998) (“For a court to pronounce upon the meaning
    or the constitutionality of a state or federal law when it has no
    jurisdiction to do so is, by very definition, for a court to act
    ultra vires.”).
    32
    J.A. Vol. I at 1–2.
    33
    Brown v. Card Serv. Ctr., 
    464 F.3d 450
    , 452
    (3d Cir. 2006).
    12
    on the viability of plaintiffs’ claim under the Ticket Law. In
    litigating the appeal this way, the NFL was following the lead
    of the District Court, which concluded that Finkelman failed
    to allege causation under the New Jersey Consumer Fraud
    Act. In doing so, the District Court noted that Finkelman’s
    failure to enter the NFL ticket lottery raised “certain standing
    issues,” but decided “the issue [was] more properly
    examined” in the context of New Jersey law “as opposed to
    standing.”34
    We must take a different approach. A federal court’s
    obligation to assure itself that it has subject matter jurisdiction
    over a claim is antecedent to its power to reach the merits of
    that claim.35 To that end, even when appellees do not address
    standing, we must determine on our own whether standing
    exists.36 Cognizant of our “bedrock obligation to examine
    [our] own subject matter jurisdiction,” we therefore asked the
    parties to submit supplemental briefs addressing standing.37
    A.     The Minimum Requirements of Article III
    Standing
    To establish Article III standing, a plaintiff must
    demonstrate “(1) an injury-in-fact, (2) a sufficient causal
    34
    J.A. Vol. I at 36:2–13.
    35
    Sinochem Int’l Co. v. Malay. Int’l Shipping Corp., 
    549 U.S. 422
    , 430–31 (2007).
    36
    Steele v. Blackman, 
    236 F.3d 130
    , 134 n.4 (3d Cir. 2001).
    37
    Pub. Interest Research Grp. of N.J., Inc. v. Magnesium
    Elektron, Inc., 
    123 F.3d 111
    , 117 (3d Cir. 1997).
    13
    connection between the injury and the conduct complained of,
    and (3) a likelihood that the injury will be redressed by a
    favorable decision.”38
    To allege the first element, injury-in-fact, a plaintiff
    must claim “the invasion of a concrete and particularized
    legally protected interest” resulting in harm “that is actual or
    imminent, not conjectural or hypothetical.”39           To be
    “concrete,” an injury must be “real, or distinct and palpable,
    as opposed to merely abstract.”40          To be sufficiently
    “particularized,” an injury must “affect the plaintiff in a
    personal and individual way.”41 Plaintiffs do not allege an
    injury-in-fact when they rely on a “chain of contingencies” or
    “mere speculation.”42
    38
    Neale v. Volvo Cars of N. Am., LLC, 
    794 F.3d 353
    ,
    358-59 (3d Cir. 2015) (internal quotation marks omitted and
    punctuation modified) (quoting Susan B. Anthony List v.
    Driehaus, 
    134 S. Ct. 2334
    , 2341 (2014)).
    39
    Blunt v. Lower Merion Sch. Dist., 
    767 F.3d 247
    , 278 (3d
    Cir. 2014) (citing Lujan v. Defenders of Wildlife, 
    504 U.S. 555
    , 560 (1992)), cert. denied, 
    135 S. Ct. 1738
    (2015).
    40
    N.J. Physicians, Inc. v. President of the United States, 
    653 F.3d 234
    , 238 (3d Cir. 2011) (quoting City of Los Angeles v.
    Lyons, 
    461 U.S. 95
    , 102 (1983), and Whitmore v. Arkansas,
    
    495 U.S. 149
    , 155 (1990)).
    41
    Defenders of 
    Wildlife, 504 U.S. at 560
    n.1.
    42
    Constitution Party of Pa. v. Aichele, 
    757 F.3d 347
    , 364
    (3d Cir. 2014) (quoting Clapper v. Amnesty Int’l USA, 
    133 S. Ct. 1138
    , 1148 (2013)).
    14
    The second element of Article III standing is causation.
    This element requires the alleged injury to be “fairly traceable
    to the challenged action of the defendant, and not the result of
    the independent action of some third party not before the
    court.”43 This requirement is “akin to ‘but for’ causation” in
    tort and may be satisfied “even where the conduct in question
    might not have been a proximate cause of the harm.”44 An
    “indirect causal relationship will suffice,” provided that “there
    is a ‘fairly traceable connection between the alleged injury in
    fact and the alleged conduct of the defendant.’”45
    Finally, the plaintiff must establish redressability. This
    requires the plaintiff to show that it is “likely, as opposed to
    merely speculative,” that the alleged injury will be redressed
    by a favorable decision.46
    The burden to establish standing rests with the
    plaintiffs.47 The manner in which plaintiffs go about
    43
    Toll Bros., Inc. v. Twp. of Readington, 
    555 F.3d 131
    ,
    137-38 (3d Cir. 2009) (quoting Defenders of 
    Wildlife, 504 U.S. at 560
    ).
    44
    Edmonson v. Lincoln Nat’l Life Ins. Co., 
    725 F.3d 406
    ,
    418 (3d Cir. 2013) (citing The Pitt News v. Fisher, 
    215 F.3d 354
    , 360–61 (3d Cir. 2000)).
    45
    Toll 
    Bros., 555 F.3d at 142
    (quoting Vt. Agency of Natural
    Res. v. United States ex rel. Stevens, 
    529 U.S. 765
    , 771
    (2000)).
    46
    Defenders of 
    Wildlife, 504 U.S. at 561
    (internal quotation
    marks omitted).
    47
    Berg v. Obama, 
    586 F.3d 234
    , 238 (3d Cir. 2009).
    15
    satisfying that burden depends on the posture of the case. The
    Supreme Court has said that “each element [of standing] must
    be supported in the same way as any other matter on which
    the plaintiff bears the burden of proof, i.e., with the manner
    and degree of evidence required at the successive stages of
    the litigation.”48 When assessing standing on the basis of the
    facts alleged in a complaint, this means we apply the same
    standard of review we use when assessing a motion to dismiss
    for failure to state a claim.49
    We have described this inquiry as a three-step process.
    First, we “tak[e] note of the elements a plaintiff must plead to
    state a claim”—here, the three elements of Article III
    standing.50 Second, we eliminate from consideration any
    allegations that, “because they are no more than conclusions,
    are not entitled to the assumption of truth.”51 Third, “where
    there are well-pleaded factual allegations, [we] assume their
    veracity and then determine whether they plausibly” establish
    the prerequisites of standing.52 In conducting this analysis,
    we are mindful of the Supreme Court’s teaching that all
    aspects of a complaint must rest on “well-pleaded factual
    48
    Defenders of 
    Wildlife, 504 U.S. at 561
    .
    49
    In re Schering Plough Corp. Intron/Temodar Consumer
    Class Action, 
    678 F.3d 235
    , 243 (3d Cir. 2012).
    50
    
    Id. (quoting Santiago
    v. Warminster Twp., 
    629 F.3d 121
    ,
    130 (3d Cir. 2010)).
    51
    
    Id. 52 Id.
    16
    allegations” and not “mere conclusory statements.”53 Thus, to
    survive a motion to dismiss for lack of standing, a plaintiff
    “must allege facts that affirmatively and plausibly suggest that
    it has standing to sue.”54 Speculative or conjectural assertions
    are not sufficient.55
    53
    Ashcroft v. Iqbal, 
    556 U.S. 662
    , 678–79 (2009)
    (discussing Bell Atl. Corp. v. Twombly, 
    550 U.S. 544
    (2007)).
    54
    Amidax Trading Grp. v. S.W.I.F.T. SCRL, 
    671 F.3d 140
    ,
    145 (2d Cir. 2011).
    55
    Schering 
    Plough, 678 F.3d at 248
    (rejecting the
    sufficiency of an allegation that rested on “pure conjecture”).
    Some of our sister circuits have questioned how well the
    “plausibility” standard of Iqbal and Twombly maps onto
    standing doctrine. See, e.g., Maya v. Centex Corp., 
    658 F.3d 1060
    , 1068 (9th Cir. 2011) (“We simply note that Twombly
    and Iqbal deal with a fundamentally different issue, and that
    the court’s focus should be on the jurisprudence that deals
    with constitutional standing.”); Ross v. Bank of Am., N.A.
    (USA), 
    524 F.3d 217
    , 225 (2d Cir. 2008) (“However,
    plausibility is not at issue at this point, as we are considering
    only Article III standing.”).
    17
    Absent standing on the part of the named plaintiffs, we
    must dismiss a putative class action for lack of subject matter
    jurisdiction.56 As will become apparent, we have no choice
    but to do so here.
    B.     Hoch-Parker Does Not Allege an Article III
    Injury
    The District Court concluded that Hoch-Parker lacks
    Article III standing because he never purchased a ticket to the
    Super Bowl, meaning that he suffered no out-of-pocket loss
    and, in the District Court’s view, no injury-in-fact. This is
    Without wading too deeply into this particular thicket, we
    are content to say that, even when reviewing only the bare
    allegations of a complaint, Iqbal and Twombly teach that
    standing cannot rest on mere “legal conclusions” or “naked
    assertions.”     David v. Alphin, 
    704 F.3d 327
    , 333
    (4th Cir. 2013); see also 
    Maya, 658 F.3d at 1068
    (a plaintiff
    cannot “rely on a bare legal conclusion to assert injury-in-fact,
    or engage in an ingenious academic exercise in the
    conceivable to explain how defendants’ actions caused his
    injury”) (internal quotation marks omitted); Morse v. Lower
    Merion Sch. Dist., 
    132 F.3d 902
    , 906 (3d Cir. 1997) (“[A]
    court need not credit a complaint’s ‘bald assertions’ or ‘legal
    conclusions’ when deciding a motion to dismiss.”).
    56
    
    Neale, 794 F.3d at 362
    (“[T]he ‘cases or controversies’
    requirement is satisfied so long as a class representative has
    standing.”).
    18
    plainly correct.57 Injuries-in-fact must be “particularized” in
    the sense of “affect[ing] the plaintiff in a personal and
    individual way.”58 Because Hoch-Parker never purchased a
    ticket on the secondary market, he suffered no more injury
    than any of the possibly tens of thousands of people who
    thought about purchasing a ticket to the Super Bowl and
    chose not to. Nor does Hoch-Parker allege an “actual” injury,
    as opposed to one that is “conjectural or hypothetical.”59
    Because he chose not to purchase any tickets, the amount of
    any damages Hoch-Parker might have suffered due to the
    NFL’s alleged misconduct is completely indeterminate.
    Perhaps sensing the weakness of his claim to have
    suffered an injury-in-fact, Hoch-Parker tries to recast his
    injury as the “lost opportunity” he suffered when he was
    unable to attend the Super Bowl. He cites our decision in
    Howard v. New Jersey Department of Civil Service in support
    of that assertion.60 We find this “lost opportunity” argument
    completely unpersuasive. Indeed, any analogy between
    Howard and the circumstances here is, at best, extremely
    strained.
    57
    Even plaintiffs’ counsel “conceded” at oral argument that
    the question of whether Hoch-Parker has standing is a
    “troubling,” “troublesome,” and “difficult issue.” Oral Arg.
    Recording     at     1:42,   5:35,   6:46,     available   at
    http://www2.ca3.uscourts.gov/oralargument/audio/15-
    1435Finkelmanv.NationalFootball.mp3.
    58
    Defenders of 
    Wildlife, 504 U.S. at 560
    n.1.
    59
    
    Id. at 560
    (quotation marks omitted).
    60
    
    667 F.2d 1099
    (3d Cir 1981).
    19
    The Howard plaintiffs alleged that the physical agility
    test then required of applicants to become police officers in
    Newark discriminated on the basis of sex.61 In assessing
    whether the plaintiffs had standing, the Court concluded that
    the alleged loss of the opportunity to obtain a job with the
    police force was sufficient to make out an injury-in-fact.62 Of
    course, the Howard plaintiffs had already entered a
    competitive application process that they claimed was
    derailed by unconstitutional conduct on the part of state
    actors. Hoch-Parker, by contrast, merely “researched the
    availability of tickets” for the Super Bowl.63 He took no
    meaningful action to pursue the “opportunity” to attend the
    game at all.
    Moreover, Hoch-Parker completely glosses over the
    Howard Court’s actual resolution of the standing issue in that
    case. Since the Howard plaintiffs “were refused employment
    because they failed the initial written examination, not
    because they failed the physical agility test,” the Court
    concluded that they lacked standing because they could not
    show any “causal connection between the claimed injury (loss
    of job opportunity) and the challenged conduct (use of the
    physical agility test).”64     Hoch-Parker faces the same
    causation problem. Demand for Super Bowl tickets was so
    great that Hoch-Parker might have been unable to obtain any
    tickets at his preferred price even if the NFL had made all
    61
    
    Id. at 1100–01.
     62
    
    Id. at 1101.
     63
    First Am. Compl. ¶ 34.
    
    64 667 F.2d at 1101
    .
    20
    tickets to the Super Bowl available to members of the general
    public. As in Howard, there is thus an insufficient connection
    between Hoch-Parker’s claimed injury (the loss of an
    opportunity to attend the Super Bowl) and the challenged
    conduct (withholding of tickets).
    Our conclusion that Hoch-Parker lacks standing is not
    a hard call. If the Court were to credit Hoch-Parker’s concept
    of injury, everyone who contemplated buying a Super Bowl
    ticket but decided against it would have standing to bring a
    claim under the Ticket Law. Article III is simply not that
    expansive.65
    65
    Hoch-Parker suggests that the Supreme Court may decide
    in Spokeo, Inc. v. Robins that “naked statutory violations” are
    sufficient to confer Article III standing and encourages us to
    consider the “direct application” of Spokeo to this case.
    (Appellants’ Ltr. to Ct. at 6 (Sept. 29, 2015).) The Supreme
    Court there granted certiorari to address the question of
    “[w]hether Congress may confer Article III standing upon a
    plaintiff who suffers no concrete harm, and who therefore
    could not otherwise invoke the jurisdiction of a federal court,
    by authorizing a private right of action based on a bare
    violation of a federal statute.” Supreme Court, No. 13-1339,
    Question Presented, http://www.supremecourt.gov/qp/13-
    01339qp.pdf (last visited Nov. 16, 2015). We need not wait
    for an opinion in Spokeo to decide that Hoch-Parker lacks
    standing.
    21
    Accordingly, we will uphold the District Court’s
    dismissal of Hoch-Parker’s Ticket Law claim for lack of
    As an initial matter, Spokeo involves the assertion of
    standing absent a showing of “concrete harm.” The question
    presented does not address the separate requirement that an
    Article III injury must be sufficiently “particularized.”
    Having chosen not to purchase a Super Bowl ticket, Hoch-
    Parker asserts no particularized harm at all.
    Second, Spokeo concerns the limits that Article III places on
    Congress’s ability to create a statutory cause of action. It
    does not address the separate issue of whether a state
    legislature can elevate harms to the status of Article III
    injuries in the context of diversity jurisdiction. That issue
    raises serious federalism concerns absent from the Spokeo
    case.
    Third, Hoch-Parker’s Spokeo argument is ultimately futile.
    Whatever the contours of Article III, the New Jersey
    Consumer Fraud Act only permits a private plaintiff to sue
    when that plaintiff has suffered an “ascertainable loss of
    moneys or property.” N.J. Stat. Ann. § 56:8-19. Although we
    do not reach the merits of Hoch-Parker’s claims, we
    nonetheless observe that Hoch-Parker nowhere explains how,
    even if constitutional standing can rest on a bare statutory
    violation, he would have statutory standing absent the kind of
    injury that New Jersey law requires.
    22
    Article III standing.66
    C.     Finkelman Does Not Allege an Article III
    Injury
    We also conclude that Finkelman has failed to allege
    facts which, if true, would be sufficient to establish Article III
    standing.
    The complaint purports to bring a class action on
    behalf of “all persons who paid for . . . tickets to Super Bowl
    XLVIII in excess of the printed ticket price” and alleges that
    class members “suffered ascertainable losses consisting of the
    purchase price of the ticket in excess of the face value.”67
    Whereas Hoch-Parker never purchased any tickets, we will
    assume that Finkelman purchased two $2,000 tickets with an
    original face price of $800 each.68 The question is whether
    this $2,400 difference—or any portion of it—amounts to an
    injury-in-fact caused by the NFL’s alleged misconduct.
    66
    The complaint is somewhat ambiguous as to whether
    plaintiffs’ unjust enrichment claim is brought in the name of
    Finkelman, Hoch-Parker, or both. Because that claim alleges
    that “[p]laintiffs and the putative Class paid an amount for
    tickets that exceed [sic] the value of the tickets” (First. Am.
    Compl. ¶ 53), and since Hoch-Parker paid nothing for any
    tickets, we will construe the unjust enrichment claim as being
    brought by Finkelman as the sole class representative.
    67
    
    Id. ¶¶ 38,
    50.
    68
    See supra note 16.
    23
    In exploring this question, we are cognizant of the fact
    that “[t]he choice among alternative definitions of the injury
    may control the determination of causation.”69 We will
    therefore examine the allegations in the complaint from a
    number of different angles to see if Finkelman’s purported
    injury can be framed in a way that satisfies Article III.
    1.     Theory One: The NFL’s Alleged
    Misconduct Prevented Finkelman
    from Purchasing a Face-Price Ticket
    One way to understand Finkelman’s claim is that, but
    for the NFL’s withholding of more than 5% of Super Bowl
    tickets from sale to the general public, he would have been
    able to buy such a ticket at face price. In view of the facts
    alleged in the complaint, however, Finkelman has not
    adequately asserted that his inability to buy a face-price ticket
    is fairly traceable to any actions by the NFL.
    In order to explain why causation is such a difficult
    issue in this case, it is helpful to start with an example.
    Imagine that there are ten people in line to attend a concert at
    a venue with only ten seats. It turns out, unbeknownst to the
    would-be ticket buyers, that the event organizer has violated
    the Ticket Law by withholding 50% of tickets for corporate
    insiders. The first five people in line are able to buy a ticket
    at face price, but just as the sixth person reaches the ticket
    counter, the clerk puts a “SOLD OUT” sign in the window
    and turns off the lights. The sixth person in line then (i) buys
    69
    13A Charles Alan Wright, Arthur R. Miller & Edward H.
    Cooper, Federal Practice and Procedure: Jurisdiction § 3531.5
    (3d ed. 2008).
    24
    a ticket from one of the five insiders in the resale market at a
    price higher than face value, and (ii) sues the event organizer
    under the Ticket Law. She seeks, as damages, the difference
    between the face price of the ticket and the higher price she
    actually paid.
    In this scenario, our plaintiff should have no trouble
    alleging that she suffered an injury-in-fact fairly traceable to
    the defendant’s conduct. But for the defendant’s illegal
    withholding, our plaintiff—as the sixth person in line—would
    have been able to buy a ticket at face price.70
    This example reflects the same theory that Finkelman
    proffers here. He seeks as damages the difference between
    the $800 face price of Super Bowl tickets and the $2,000
    price he paid in the resale market.71 But while this theory of
    recovery works very well as applied to our hypothetical, it
    completely falls apart in relation to Finkelman.
    The problem is that Finkelman failed to enter the
    70
    One might also ask whether the eleventh person in line
    would have standing. It seems clear to us that if the defendant
    in such a case could show that (i) there were only ten tickets
    available, and (ii) the plaintiff was the eleventh person in line,
    and then moved for dismissal on causation grounds, the
    district court would have no choice but to dismiss the case for
    lack of standing.
    71
    Indeed, presumably Finkelman actually seeks more than
    this difference as damages. The Consumer Fraud Act
    mandates that successful plaintiffs receive treble damages and
    attorneys’ fees and costs. See N.J. Stat. Ann. § 56:8–19.
    25
    NFL’s ticket lottery. Irrespective of whether the NFL
    withheld tickets in violation of the Ticket Law—a question
    we do not reach here—Finkelman chose to buy his tickets on
    the secondary market. As a result, there was always a zero
    percent chance that he could procure a face-price ticket. In
    this sense, any harm that Finkelman suffered is properly
    attributed not to the NFL, but rather to his own decision not to
    enter the ticket lottery.72
    72
    We note that Finkelman’s inability to obtain a face-price
    ticket in the resale market is itself a consequence of the
    incredibly high demand for Super Bowl tickets. Since 95% of
    entertainment events in New Jersey do not sell out, see supra
    note 6, it is almost never clear ahead of time whether buying
    tickets to an event with the plan to resell them for a profit will
    be a good investment. Ticket brokers therefore “assume the
    risk of not being able to sell [their] tickets.” Stephen Happel
    & Marianne M. Jennings, The Eight Principles of the
    Microeconomic and Regulatory Future of Ticket Scalping,
    Ticket Brokers, and Secondary Ticket Markets, 28 J.L. &
    Com. 115, 129 (2010).
    Thus, for most events, a fan might be able to obtain a ticket
    for face price (or less!) from a broker desperate to recoup
    some portion of his or her investment in the waning moments
    before an event begins. Here, by contrast, plaintiffs assert
    that the demand for Super Bowl tickets is so overwhelming
    that, once in the secondary market, a fan “must pay
    substantially more than the ticket’s face value.” (First Am.
    Compl. ¶ 1 (emphasis added).) Plaintiffs therefore agree:
    once Finkelman chose not to enter the lottery, it was
    impossible for him to pay face price for a ticket.
    26
    Finkelman tries to rebut this view by arguing that it
    would be unfair to require him to have entered the lottery in
    order to assert standing. As Finkelman puts it, such a ruling
    would “amount to no less than conditioning Plaintiffs’
    standing to seek redress for Defendants’ unlawful conduct
    upon their participation in the very wrongdoing they seek to
    challenge.”73 Though this argument may have some intuitive
    appeal, it ultimately misses the mark.
    Finkelman is of course correct that the law does not
    always require a plaintiff to participate in some allegedly
    unlawful practice in order to bring a lawsuit challenging that
    practice.74 Even so, the obstacle facing Finkelman is more
    fundamental. The causation element of standing requires a
    plaintiff to allege facts sufficient to show that his or her injury
    is “fairly traceable” to the alleged wrongdoing of the
    defendant.75 We have explained that traceability requires, at a
    minimum, that the defendant’s purported misconduct was a
    “but for” cause of the plaintiff’s injury.76 And, if we treat
    Finkelman’s injury-in-fact as his inability to obtain face-price
    tickets to the Super Bowl, that injury is simply not traceable
    73
    Appellants’ Br. at 36.
    74
    See, e.g., Free Enter. Fund v. Pub. Co. Accounting
    Oversight Bd., 
    561 U.S. 477
    , 489–91 (2010) (describing
    circumstances in which district courts have subject matter
    jurisdiction to consider a challenge to an administrative
    adjudication even when the agency action has not yet
    terminated).
    75
    Toll 
    Bros., 555 F.3d at 142
    .
    76
    See 
    Edmonson, 725 F.3d at 418
    .
    27
    to the NFL’s withholding of tickets given that Finkelman
    sought tickets only in the resale market.77
    Any other conclusion is untenable. Were we to adopt
    Finkelman’s view of standing, anyone who bought a Super
    Bowl ticket from a reseller could sue the NFL to recover
    three-times the difference between the purchase price and
    face price.78 One might ask: what if the only ticket
    Finkelman could find was on sale for $10,000? Or $15,000?
    Or $20,000? No matter. On the theory of injury articulated in
    plaintiffs’ complaint, everyone who bought a resold ticket
    could sue the NFL for any costs above face price, irrespective
    of having chosen not to enter the ticket lottery. Because this
    theory of standing fails to account for the need to show a
    causal connection between plaintiffs’ alleged injury and the
    NFL’s conduct, we have no choice but to reject it.
    Indeed, Finkelman’s standing difficulties would likely
    be insuperable even if the NFL had committed only a de
    minimis violation of the Ticket Law by distributing 6% of
    tickets to League insiders and selling 94% of tickets to
    members of the general public on a first-come, first-served
    77
    One might argue that, even if Finkelman cannot allege
    that the NFL prevented him from obtaining a face-price ticket,
    the NFL’s alleged withholding of tickets perhaps diminished
    his chances of acquiring a face-price ticket. Here again,
    though, Finkelman runs into the problem that he failed to
    enter the ticket lottery. His chance of obtaining a face-price
    ticket was always zero.
    78
    See supra note 71 (discussing mandatory damages under
    the Consumer Fraud Act).
    28
    basis. Unless Finkelman could allege facts indicating that, as
    in our hypothetical, he was one of the “next people in line,”
    demand for Super Bowl tickets so far exceeds supply that
    Finkelman’s probability of obtaining a face-price ticket in a
    public sale would have been effectively nil regardless of the
    NFL’s ticketing practices. Any argument that Finkelman
    could have procured a face-price ticket to the Super Bowl—at
    least on the facts alleged in the complaint before us—is
    ultimately conjectural and speculative. It is, in short,
    precisely the kind of allegation that cannot sustain Article III
    standing.79
    Consequently, Finkelman has failed to allege standing
    on the theory that, but for the NFL’s alleged withholding, he
    would have been able to purchase a face-price ticket.
    2.     Theory Two: Finkelman Paid a
    Higher Price in the Resale Market Due
    to the NFL’s Withholding of Tickets
    We will also consider another way of framing the
    Article III injury in this case—one emphasized by plaintiffs’
    counsel at oral argument. Instead of thinking of Finkelman’s
    injury as his inability to acquire a face-price ticket, we might
    focus instead on the increased price he allegedly paid for his
    tickets on the resale market. In other words, it may be the
    case that, but for the NFL’s alleged wrongdoing, the price
    Finkelman paid for a resold ticket would have been cheaper.
    This argument relies on the basic principle that “[a] reduction
    79
    See 
    Blunt, 767 F.3d at 278
    ; 
    Aichele, 757 F.3d at 364
    .
    29
    in supply will cause prices to rise.”80 One might suppose that
    if the NFL were withholding Super Bowl tickets, its behavior
    would have had the effect of decreasing the supply of tickets
    in the resale market and driving up those tickets’ prices.
    To give a concrete example, imagine that, for a given
    event, the face price of a ticket is $100 and its price on the
    resale market is $200. If we assume that an event organizer’s
    illegal withholding drives up the price on the resale market, it
    may be that, but for the withholding, the price on the resale
    market would have been $180. In this example, a plaintiff’s
    injury-in-fact is not $100 (the difference between the face
    price and the resale price), but $20 (the difference between
    the resale price with and without the defendant’s illegal
    withholding).
    In conceptualizing Finkelman’s injury this way, we
    recognize that the First Amended Complaint did not allege
    this theory of harm as clearly as it could have. Indeed,
    Finkelman primarily sought as damages “the purchase price
    of the ticket in excess of the face value.”81 Nonetheless,
    drawing all reasonable inferences in Finkelman’s favor, we
    find that he sufficiently raised this price-inflation theory of
    injury below. We will therefore consider the argument that
    his Article III injury is not the $1,200 premium he paid per
    ticket, but rather some unspecified portion of that amount
    attributable to the NFL’s alleged withholding.
    80
    In re Linerboard Antitrust Litig., 
    305 F.3d 145
    , 152
    (3d Cir. 2002).
    81
    First Am. Compl. ¶ 50.
    30
    At first blush, this might seem to be a promising way
    for Finkelman to establish standing. But there is a problem.
    Demand for tickets to the Super Bowl is so high that those
    tickets command, on plaintiffs’ own telling, several times
    their face price in the resale market.82 Assuming that
    Finkelman is correct that the NFL allocated some 99% of
    Super Bowl tickets to League insiders, those insiders had the
    same incentive to resell their tickets as the unnamed broker
    who sold Finkelman his two tickets: they could make an
    enormous profit by doing so. Thus, while it might be the case
    that the NFL’s withholding increased ticket prices on the
    resale market, it might also be the case that it had no effect on
    the resale market.83
    Indeed, on the facts alleged here, withholding tickets
    from the general public and distributing them to League
    insiders might have even increased the supply of tickets on
    the resale market, leading to lower prices. The complaint
    never specifies whether the NFL insiders who received the
    vast majority of Super Bowl tickets had to pay for those
    tickets in the first instance. Now, compare two potential
    ticket resellers. The first, an individual fan, could resell his or
    her ticket and pocket as profit the difference between the
    82
    See 
    id. ¶ 27
    (alleging that tickets for the 2013 Super Bowl
    with a face price of $600 sold in the secondary market for
    $3,000); 
    id. ¶ 35
    (alleging that Hoch-Parker could not find a
    ticket to the 2014 Super Bowl for less than $4,200).
    83
    See Happel & Jennings, The Eight Principles of the
    Microeconomic and Regulatory Future of Ticket Scalping, 28
    J.L. & Com. at 162 (explaining that held-back tickets “do
    make their way into secondary markets”).
    31
    resale price and the up-front cost of the ticket. The second, a
    League insider who received a ticket for free, could make
    even more money by pocketing the entire resale price of the
    ticket as profit. For this reason, League insiders might have
    been especially eager to resell their tickets—meaning that the
    NFL’s ticket distribution practices may have actually
    increased the number of ticket sellers in the secondary
    market. Since an increase in supply leads to lower prices, it is
    entirely possible that Finkelman was able to a buy a ticket for
    less money than if members of the general public had been
    able to purchase 95% of all tickets in the first instance.
    To state the problem succinctly: we have no way of
    knowing whether the NFL’s withholding of tickets would
    have had the effect of increasing or decreasing prices on the
    secondary market. We can only speculate—and speculation is
    not enough to sustain Article III standing.
    This conclusion may seem counterintuitive. After all,
    Finkelman is pursuing a simple price inflation theory based on
    the relationship between supply and demand in the ticket
    resale market, and federal courts typically credit allegations of
    injury that involve no more than “application of basic
    economic logic.”84 But there is a difference between
    allegations that stand on well-pleaded facts and allegations
    that stand on nothing more than supposition.
    In explaining that difference, it may be helpful to
    compare failure to allege an Article III injury with failure to
    state a plausible claim under Rule 12(b)(6). The Supreme
    84
    United Transp. Union v. I.C.C., 
    891 F.2d 908
    , 912 n.7
    (D.C. Cir. 1989).
    32
    Court’s decision in Bell Atlantic v. Twombly is the touchstone.
    The plaintiffs there, who purported to represent a class of
    telephone and high-speed Internet service subscribers, alleged
    that the companies that provided these services had conspired
    to minimize competition and to inflate service charges.85 So
    far, so good: a person who claims to have paid inflated prices
    resulting from an antitrust conspiracy clearly alleges an
    Article III injury. Where plaintiffs fell short was in alleging
    facts that would lead to the plausible inference that the
    defendants had entered a conspiracy at all. The complaint
    focused only on defendants’ “parallel conduct,” and parallel
    conduct, standing alone, is not necessarily “suggestive of
    conspiracy.”86     Because plaintiffs’ allegations were not
    sufficient to “nudge[] their claims across the line from
    conceivable to plausible,” they failed to state a claim under
    Rule 12(b)(6).87
    It is thus fair to say that, in Twombly, the plaintiffs
    looked around and saw conduct consistent with a conspiracy,
    but they saw no facts that indicated more plausibly that a
    conspiracy actually existed.        Finkelman’s situation is
    different. Given the NFL’s ticket distribution practices, he
    knows precisely how the NFL allegedly violated the law. But
    when it comes to injury, he looks only to the difference
    between a ticket’s $800 face price and the price he paid and
    says, “I have a strong suspicion that this ticket would have
    been cheaper if more tickets had been available for purchase
    
    85 550 U.S. at 550
    .
    86
    
    Id. at 568.
     87
    
    Id. at 570.
    33
    by members of the general public.” That claim rests on no
    additional facts at all. It is pure conjecture about what the
    ticket resale market might have looked like if the NFL had
    sold its tickets differently. Article III injuries require a firmer
    foundation.
    The D.C. Circuit’s decision in Dominguez v. UAL
    Corp. provides a helpful point of comparison.88 The plaintiff
    there sued United Air Lines under the federal antitrust laws,
    asserting that United’s prohibition on reselling airplane tickets
    deprived him of a secondary market in which he might have
    been able to purchase tickets for less money than he paid
    United.89 While the district court granted summary judgment
    in favor of the defendant, the D.C. Circuit concluded that the
    district court should have dismissed the case for lack of
    Article III standing.
    The D.C. Circuit reached this conclusion even though
    the plaintiff had introduced testimony from an expert who
    surveyed United’s customers and concluded that “a high
    percentage of respondents would consider using a feature that
    allowed them to legally sell or give away airline tickets they
    are unable to use.”90 In the plaintiff’s view, this was
    sufficient to show that United’s prohibition on a secondary
    market for airplane tickets caused him an injury-in-fact. The
    D.C. Circuit disagreed. It noted that the plaintiff’s expert had
    failed to take into account the costs of changing United’s
    88
    
    666 F.3d 1359
    (D.C. Cir. 2012).
    89
    
    Id. at 1360–61.
     90
    
    Id. at 1363.
    34
    reservation system, the possible introduction of new, seller-
    imposed fees, and myriad other factors that might influence
    prices in a hypothetical resale market. Thus, the plaintiff
    could not show “that any secondary market would have led to
    a lower price than what [the plaintiff] paid,” and the absence
    of a plausible injury-in-fact required dismissal.91
    Dominguez illustrates the intractable standing
    problems that may arise when a lawsuit rests on allegations
    about a hypothetical resale market. Like the plaintiff in that
    case, Finkelman only can speculate as to whether, absent the
    NFL’s withholding, the prices he paid in the resale market
    would have been cheaper. He has to guess. In the final
    analysis, Article III requires more than this kind of
    conjecture.92
    To be fair, one might point out that Dominguez was
    handed down after discovery had concluded, whereas
    Finkelman has not had a chance to introduce evidence that
    might more fully flesh out his theories of injury and causation.
    91
    
    Id. 92 We
    emphasize that Finkelman’s standing issues arise from
    an unusual combination of factors, including reliance on
    claims about a hypothetical resale market and the NFL’s
    idiosyncratic ticketing practices. In the mine run of cases,
    where a complaint alleges that the defendant committed an
    unlawful act that caused a traditional injury, the most
    plausible inference will be that the plaintiff sustained an
    Article III injury. The amount of damages is then a question
    of proof. Here, by contrast, the complaint does not permit the
    plausible inference that Finkelman suffered any injury at all.
    35
    Indeed, at oral argument, his counsel suggested that he had an
    economist ready to testify that the NFL’s withholding of
    tickets increased the price that Finkelman paid in the resale
    market.93
    We are of course mindful that, “[a]t the pleading stage,
    general factual allegations of injury resulting from the
    defendant’s conduct may suffice, for on a motion to dismiss
    we presume that general allegations embrace those specific
    facts that are necessary to support the claim.”94 But we have
    been careful to note that, even at the pleading stage, “we need
    not accept as true unsupported conclusions and unwarranted
    inferences.”95 Insofar as we construe the complaint to allege
    that Finkelman paid more for his tickets than he would have
    absent the NFL’s alleged misconduct, that contention is a
    “bald assertion” unsupported by well-pleaded facts.96 Nor are
    we persuaded by plaintiffs’ counsel’s promises of future
    expert testimony when no facts supporting plaintiffs’ theory
    93
    Oral Arg. Recording at 23:26–24:07.
    94
    Nat’l Org. for Women, Inc. v. Scheidler, 
    510 U.S. 249
    ,
    256 (1994) (quoting Defenders of 
    Wildlife, 504 U.S. at 561
    ).
    95
    Maio v. Aetna, Inc., 
    221 F.3d 472
    , 500 (3d Cir. 2000)
    (internal quotation marks omitted).
    96
    
    Morse, 132 F.3d at 906
    .
    36
    of injury appear within the four corners of the complaint.97
    We conclude that Finkelman’s difficulties in alleging
    an injury-in-fact are insurmountable. Because the District
    Court lacked subject matter jurisdiction to reach the merits of
    plaintiffs’ claims, we will therefore vacate its dismissal of
    Finkelman’s Ticket Law and unjust enrichment claims under
    Rule 12(b)(6).98
    97
    In its current posture, this case does not require us to
    consider the correct result if plaintiffs’ counsel had included
    allegations about his proffered expert in the complaint itself.
    We simply note that, in circumstances where the sufficiency
    of an allegation regarding an injury-in-fact is contested at the
    motion to dismiss stage, district courts have numerous
    procedural devices available to them to satisfy themselves of
    their Article III jurisdiction. See In re Rockefeller Ctr. Props.,
    Inc. Sec. Litig., 
    184 F.3d 280
    , 288 (3d Cir. 1999) (explaining
    that a district court may convert a motion to dismiss into one
    for summary judgment, provided that all parties receive a
    “reasonable opportunity” to present relevant evidence);
    Doherty v. Rutgers Sch. of Law-Newark, 
    651 F.2d 893
    ,
    898 n.6 (3d Cir. 1981) (district courts, when assessing pre-
    discovery challenges to standing, may consider plaintiffs’
    affidavits or conduct preliminary evidentiary hearings).
    98
    While standing arises on a claim-by-claim basis,
    Finkelman alleges the same injury for purposes of his Ticket
    Law and unjust enrichment claims. We therefore need not
    engage in a “claim-by-claim” discussion of standing. Toll
    
    Bros., 555 F.3d at 138
    n.5.
    37
    IV.    Conclusion
    The threshold requirements of standing are “moored in
    the constitutional principle that the judiciary’s power only
    extends to cases or controversies.”99 In reaching our
    conclusions in this case, we neither interpret the Ticket Law’s
    meaning nor pass judgment on future Ticket Law claims. The
    New Jersey Attorney General can always sue to enforce the
    Law, and the courts of New Jersey remain open to such suits.
    But Hoch-Parker and Finkelman chose to sue in federal court,
    and their failure to allege the elements of standing means that
    we lack jurisdiction to adjudicate their claims.
    We will therefore affirm the District Court’s judgment
    with respect to Hoch-Parker and vacate the District Court’s
    judgment with respect to Finkelman. Because the NFL did
    not raise the issue of Finkelman’s Article III standing before
    the District Court,100 we will dismiss this appeal without
    prejudice for lack of jurisdiction and remand to the District
    Court for further proceedings consistent with this Opinion.101
    99
    Ethypharm S.A. France v. Abbott Labs., 
    707 F.3d 223
    ,
    232 (3d Cir. 2013) (internal quotation marks omitted).
    100
    See NFL Mem. of Law, Case No. 14-cv-96 (PGS), ECF
    No. 19-1 (discussing standing in relation to Hoch-Parker but
    not Finkelman); NFL Reply Mem., ECF No. 50 (same).
    101
    See Pa. Prison Soc’y v. Cortes, 
    508 F.3d 156
    , 169 (3d
    Cir. 2007) (dismissing an appeal without prejudice for lack of
    jurisdiction when, “[b]ecause the issue of standing was raised
    for the first time on appeal, none of the plaintiffs have had the
    opportunity to present evidence or to litigate this issue.”).
    38
    On remand, the District Court may exercise its discretion as to
    whether plaintiffs should be granted leave to amend their
    complaint.102
    102
    See Newark Branch, N.A.A.C.P. v. Town of Harrison,
    
    907 F.2d 1408
    , 1418 (3d Cir. 1990) (holding that a district
    court may consider a motion to file an amended complaint
    when the earlier complaint fails to adequately allege
    standing).
    39
    

Document Info

Docket Number: 15-1435

Citation Numbers: 810 F.3d 187

Filed Date: 1/14/2016

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (32)

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Toll Bros., Inc. v. Township of Readington , 555 F.3d 131 ( 2009 )

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Berg v. Obama , 586 F.3d 234 ( 2009 )

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newark-branch-national-association-for-the-advancement-of-colored-people , 907 F.2d 1408 ( 1990 )

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