NEW YORK, Jan 22, 2026, 14:49 (EST)
- Investors have until Jan. 23 to apply for lead-plaintiff status in a class action linked to StubHub’s IPO planned for September 2025
- The lawsuit claims StubHub’s IPO filings concealed cash flow strains tied to vendor payments
- On Thursday, StubHub shares hovered near $15, significantly under the $23.50 IPO price
Investors in StubHub Holdings Inc have until Friday to petition a U.S. court to be named lead plaintiff in a proposed securities class action over disclosures tied to the company’s September initial public offering.
The timing is crucial since the lead plaintiff usually guides litigation strategy and settlement negotiations in shareholder lawsuits. Plus, the deadline can reignite focus on a stock that’s already taken a steep dive since its debut.
The complaint accuses StubHub’s IPO documents of being misleading by failing to disclose a change in when vendors were paid—a move that eventually squeezed cash flow. The lawsuit focuses on “free cash flow,” the cash remaining after operations and investments, and “trailing 12 months” data, covering the latest year’s performance.
Glancy Prongay Wolke & Rotter LLP announced that StubHub sold roughly 34 million shares at $23.50 each during its Sept. 17, 2025 IPO. The company then posted negative free cash flow in its first quarterly report after going public, blaming the year-over-year drop in operating cash flow on timing issues with vendor payments. StubHub’s stock plunged about 21% the day after those results, later sliding to as low as $10.31. 1
The Gross Law Firm issued a separate investor alert on Thursday, outlining similar claims. The firm stressed that shareholders don’t have to serve as lead plaintiff to join any potential recovery. 2
Intellectia.ai, referencing GlobeNewswire, framed the case as a clash over IPO-period cash flow disclosures and how the timing of vendor payments affected reported free cash flow. 3
StubHub shares climbed roughly 1.5% to around $15.03 in Thursday afternoon trading, according to the latest data. That still puts the stock about 36% under its $23.50 IPO price.
StubHub operates a ticket resale marketplace, competing in a busy segment of the live-events market that crosses paths with primary sellers like Live Nation Entertainment’s Ticketmaster, as well as resale specialists such as SeatGeek.
The case remains in its early phases, with the allegations yet to be proven in court. Defendants in securities lawsuits frequently contest the charges, and judges may trim or dismiss cases before any settlement is reached, often leaving investors with minimal or no compensation.
