NEW YORK, Jan 14, 2026, 12:54 EST
- Law firms reference a securities class action linked to StubHub’s IPO slated for September 2025
- The complaint claims vendor-payment timing damaged free cash flow and rendered disclosures misleading
- Shares have dropped roughly 43% from their $23.50 IPO price and were down around 1.8% in midday trading
Two U.S. law firms notified StubHub Holdings Inc (STUB) investors on Tuesday and Wednesday that they have until Jan. 23 to apply for lead-plaintiff status in a securities class action linked to the ticket reseller’s September 2025 IPO.
The deadline arrives while StubHub remains well under its IPO price, a harsh reality for early investors and a flashpoint for lawsuits over disclosure and accounting decisions.
The key issue revolves around “free cash flow” — the cash remaining after covering operating costs and capital expenditures — and if changes in StubHub’s vendor payment timing were clearly communicated to investors.
Levi & Korsinsky said the lawsuit singles out investors who bought StubHub shares tied to the IPO’s registration statement and prospectus. The complaint claims the company faced shifts in vendor payment timings that hurt free cash flow, making its related disclosures and upbeat statements misleading, the firm stated. (Source: GuruFocus/PRNewswire)
StubHub reported in its quarterly filing for the period ending Sept. 30, 2025, that the year-over-year decline in free cash flow “primarily reflects changes in the timing of payments to vendors.” Free cash flow came in at a negative $4.6 million for the quarter, down from a positive $10.6 million a year earlier, according to the filing. (Source: SEC filing)
Portnoy Law reported that StubHub’s IPO consisted of 34,042,553 shares priced at $23.50 each. The firm also noted the Jan. 23 deadline for investors seeking to be appointed lead plaintiff. On Nov. 14, 2025, StubHub’s stock plunged 21% in one day after the company released its first post-IPO quarterly results and declined to issue a forecast for the current quarter. This move triggered some analysts to downgrade the stock or lower their price targets. (Source: GlobeNewswire)
StubHub founder and CEO Eric Baker sounded upbeat in the earnings release, calling the quarter a clear sign of the “strength and resilience of our global marketplace.” The company positioned itself as a worldwide ticketing platform, running StubHub in North America and viagogo abroad. (Source: StubHub investor release)
Shares slipped roughly 1.8% to $13.34 during midday trading in New York on Wednesday, putting the stock around 43% below its $23.50 IPO price.
The court usually selects a lead plaintiff to guide the lawsuit and handle negotiations with attorneys on behalf of the entire class. According to the Levi & Korsinsky notice, investors don’t have to serve in that capacity to benefit from any settlement.
The case remains in its early phase and might be dismissed if StubHub convinces a judge that the claims fall short of the legal standard for securities fraud. Firms frequently contend that cash-flow fluctuations linked to payment timing reflect routine working-capital shifts, not concealed business issues.
StubHub faces stiff competition in the ticketing space from Live Nation’s Ticketmaster, as well as SeatGeek and Vivid Seats. Investors remain fixated on the company’s ability to drive growth and convert cash now that it’s trading on the NYSE. (Source: Investopedia)
