LEAD PLAINTIFF DEADLINE IS JANUARY 23, 2026.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired StubHub Holdings, Inc. (“StubHub”) (NYSE: STUB) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Offering Documents”) issued in connection with StubHub’s September 2025 initial public offering (the “IPO”), inclusive (the “Class Period”).
The Class Period begins on or around September 17, 2025, when StubHub conducted its IPO pursuant to the Offering Documents, selling approximately 34 million shares of Class A common stock at $23.50 per share. In StubHub’s Offering Documents issued in connection with its IPO, StubHub reported, among other things, the company’s free cash flow financial metrics and stated that StubHub believes “free cash flow is a meaningful indicator of liquidity for management and investors.” Additionally, in the Offering Documents, StubHub stated that trailing 12 months (“TTM”) “free cash flow provides a longer-term view of our business that is less impacted by the seasonality of GMS and seller payments.”
On November 13, 2025, after the market closed, StubHub issued a press release announcing its financial results for the third quarter 2025. Specifically, StubHub revealed free cash flow of negative $4.6 million in the quarter, a 143% decrease from the company’s free cash flow in the year ago period, which was positive $10.6 million. Additionally, StubHub further disclosed that the company’s net cash provided by operating activities was only $3.8 million, a 69.3% decrease from the year ago period, where StubHub reported $12.4 million in net cash provided by operating activities. That same day, StubHub filed with the SEC its Form 10-Q for the same quarterly period ended September 30, 2025 and revealed that this year-over-year decrease “primarily reflects changes in the timing of payments to vendors.”
On this news, StubHub’s stock price fell $3.95 per share, or 20.9%, to close at $14.87 per share on November 14, 2025. By the time of the filing of the complaint, StubHub’s stock was trading as low as $10.31 per share, a nearly 56% decline from the $23.50 per share IPO price.
The complaint alleges that, in the Offering Documents, Defendants made false and/or misleading statements and/or failed to disclose that: (1) StubHub was experiencing changes in the timing of payments to vendors; (2) those changes had a significant adverse impact on StubHub’s free cash flow, including TTM free cash flow; (3) as a result, StubHub’s free cash flow reports were materially misleading; and (4) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.