NEW YORK, Jan 22, 2026, 19:04 (EST)
- The deadline to become lead plaintiff in a U.S. securities class action linked to StubHub’s September IPO is Jan. 23
- The complaint focuses on purported omissions regarding the timing of vendor payments and how this affected free cash flow
- Shares hover near $15, well under the $23.50 offer price
Investors who purchased StubHub Holdings Inc shares around its September IPO have until Friday to petition a U.S. judge to be named lead plaintiff in a securities class action, according to notices released this week. https://ts2.tech/en/stubhub-stock-friday-lead-plaintiff-deadline-nears-in-ipo-cash-flow-lawsuit/
The lead plaintiff is the investor who generally steers the case on behalf of other shareholders, selects the lawyers, and makes crucial decisions as the lawsuit progresses. Miss the deadline, and the court may proceed without you.
The urgency is clear: the deadline hits in hours, not weeks. Who takes the helm of the case will influence how fast things move and could ramp up the pressure on a company that’s only just started trading publicly.
The lawsuit, filed in November in the U.S. District Court for the Southern District of New York, targets StubHub, CEO Eric H. Baker, CFO Connie James, and several IPO underwriters. These include J.P. Morgan Securities, Goldman Sachs & Co, BofA Securities, Evercore, and others. Kehoelawfirm
At the heart of the complaint lies “free cash flow”—a metric that measures cash generated by operations after capital expenditures. StubHub’s quarterly report revealed free cash flow at negative $4.6 million for the three months ending Sept. 30, compared with a positive $10.6 million in the same period last year. The company attributed the decline mainly to “changes in the timing of payments to vendors.” Sec
StubHub shares dropped $3.95, or 20.9%, closing at $14.87 on Nov. 14 after its earnings release, according to a law firm notice. The stock later dipped further, hitting $10.31 by the time the securities fraud case was filed. Globenewswire
Shares of StubHub closed near $15.30 on Thursday, marking a roughly 3% gain from the previous session. However, that price remains about 35% below its $23.50 IPO debut, according to market data.
StubHub set its IPO price at $23.50 per share, selling 34.04 million shares and pulling in roughly $800 million, Reuters reported. That put the company’s valuation at $8.6 billion. “Investors will be very keen on its growth plans,” said Matt Kennedy, senior strategist at Renaissance Capital. Reuters
StubHub operates a global marketplace for live event tickets under its StubHub and viagogo brands. The space is crowded, facing competition from resale and ticketing rivals like Live Nation Entertainment’s Ticketmaster, along with numerous smaller platforms.
Holzer & Holzer, among several plaintiff firms sending reminders, noted that investors who bought shares in or after StubHub’s Sept. 17, 2025 IPO have until Jan. 23 to apply for lead plaintiff status. The suit centers on allegations concerning vendor payment timing and disclosures about free cash flow. Globenewswire
An Intellectia.ai summary, referencing a PR Newswire alert, reported that Rosen Law Firm issued a similar deadline reminder. The firm emphasized that investors usually aren’t responsible for out-of-pocket costs due to the contingency fee arrangements typical in these lawsuits. Intellectia
The case remains in its infancy, with claims yet to face judicial scrutiny. StubHub and the underwriters might contend that the timing and seasonal patterns of payments were clearly outlined in the offering documents and subsequent filings, potentially leaving plaintiffs with little more than a stock price decline to show.
Investors can still join the proposed class without stepping up as lead plaintiffs. But if they want that lead role, the motion deadline is this Friday, according to a notice from Rosen Law Firm. Prnewswire
