NEW YORK, January 14, 2026, 12:50 EST
- StubHub faces securities class action tied to its September 2025 IPO, law firms say
- Lawsuit points to vendor payment timing and a sharp swing in free cash flow after listing
- Shares down 1.8% on Wednesday, trading well below the IPO price
StubHub Holdings Inc is facing a securities class action over disclosures tied to its September 2025 initial public offering, with law firms issuing fresh reminders this week ahead of a Jan. 23 deadline for investors to seek a lead role in the case.
The timing matters because the lead-plaintiff window is short and the first investor to win that slot can shape how the litigation runs, including any settlement talks. For StubHub, the case adds a legal overhang while it is still early in life as a listed company.
StubHub shares were down 1.8% at $13.34 in early afternoon New York trading, about 43% below the $23.50 IPO price.
The dispute centers on the IPO registration statement, the document filed to sell shares to the public, and whether it should have warned investors about a shift in the timing of payments to vendors. Plaintiffs say that shift later squeezed liquidity — the ability to meet near-term payments — and showed up in weaker free cash flow, or cash left after spending to keep the business running.
Pomerantz LLP said a class action has been filed and pointed to StubHub’s third-quarter 2025 disclosures, where free cash flow was negative $4.6 million, down from positive $10.6 million a year earlier. StubHub’s quarterly filing said the year-on-year decline “primarily reflects changes in the timing of payments to vendors,” and it reported net cash from operating activities of $3.8 million versus $12.4 million a year earlier, the notice said. It added the stock fell $3.95, or 20.9%, to close at $14.87 on Nov. 14, 2025 after those disclosures. 1
Hagens Berman, which said it is investigating the claims, framed the case as a challenge to what it called StubHub’s IPO transparency around vendor payment trends and their effect on free cash flow. “We are investigating whether StubHub’s IPO documents should have disclosed the vendor delayed payment issue,” said Reed Kathrein, a partner at the firm. 2
The Portnoy Law Firm circulated a similar alert, telling investors who bought shares in connection with the September 2025 offering that they have until Jan. 23, 2026 to file a motion to be appointed lead plaintiff. 3
Lead plaintiffs typically are investors with sizable losses who agree to represent the broader class and oversee the lawyers bringing the suit. Investors who do not file can still remain part of the proposed class if it is certified.
StubHub sells and resells tickets online, competing for consumers with major ticketing and resale players including Live Nation Entertainment’s Ticketmaster and Vivid Seats.
But the alerts and the filing itself do not resolve the case. StubHub can ask the judge to dismiss the claims, and plaintiffs still must clear hurdles on showing the alleged disclosure failures were material and caused investor losses.
