StubHub Hit With IPO Disclosure Suit as Lead-Plaintiff Race Intensifies
Plaintiffs allege the offering hid vendor‑payment timing shifts that later surfaced as negative free cash flow.
Overview
- A securities class action, Salabaj v. StubHub Holdings, Inc. (No. 25-cv-09776), has been filed in the Southern District of New York under the Securities Act of 1933.
- The complaint targets StubHub, certain senior officers and directors, and IPO underwriters, alleging the registration statement and prospectus were materially misleading.
- StubHub’s November 13 disclosures reported Q3 2025 free cash flow of negative $4.6 million and net cash from operations of $3.8 million, attributing the declines primarily to vendor‑payment timing.
- Following the earnings release, shares fell about 20.9% to $14.87 on November 14, with trading later reaching a low of $10.31, roughly 56% below the $23.50 IPO price.
- Multiple plaintiff firms are soliciting investors to seek lead‑plaintiff status by the January 23, 2026 deadline for purchasers of stock in or traceable to the September 17, 2025 IPO of roughly 34 million shares.