StubHub Holdings, Inc. (NYSE: STUB) Securities Fraud Class Action

Case Background:
This is a federal securities fraud class action lawsuit 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 17, 2025 initial public offering (the “IPO”).

StubHub operates a ticketing marketplace for live events across the globe. On or around September 17, 2025, 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’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.

Current Status of Case:
On June 26, 2026, Lead Plaintiff filed an Amended Complaint. This action is ongoing.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.