NEW YORK, Jan 24, 2026, 14:30 (EST)
The deadline for investors to step forward as lead plaintiff in a U.S. securities class action tied to StubHub Holdings’ IPO disclosures ended Friday, shareholder-rights firm Hagens Berman said. Reed Kathrein, a partner at the firm, noted they are probing whether StubHub’s IPO documents should have revealed the vendor delayed payment issue. 1
In U.S. securities class actions, a judge appoints the lead plaintiff to represent the entire class. This investor usually selects the law firm and drives the litigation strategy, including negotiations over any settlements.
StubHub shares slipped to $14.70, shedding 3.8% since the last close, according to market data. The stock remains far under its IPO price as the legal saga continues.
Levi & Korsinsky issued a notice claiming plaintiffs say StubHub’s IPO registration statement and prospectus didn’t reveal changes in vendor payment timing. According to the firm, the complaint contends this shift impacted free cash flow — the cash remaining after operations and investments — and rendered disclosures about the trailing 12 months’ performance misleading. 2
StubHub sold roughly 34 million Class A shares at $23.50 apiece in its IPO on Sept. 17, 2025, according to Glancy Prongay Wolke & Rotter’s investor alert. The company reported a free cash flow of negative $4.6 million in its first quarterly public filing—a steep 143% decline year over year. Its 10-Q attributed the drop mainly to “changes in the timing of payments to vendors,” the firm noted. After the IPO, StubHub’s shares plunged 20.9% to $14.87 on Nov. 14 and later slid as low as $10.31, the alert added. 3
The Private Securities Litigation Reform Act directs courts to consider which investor has the greatest financial stake and can effectively represent the class. Those who don’t pursue the lead role can still stay involved if the case proceeds.
Focus turns to the motions filed by the Jan. 23 deadline and the court’s next steps on scheduling. Initial stages typically revolve around whether the case withstands an early dismissal attempt before moving into detailed fact-finding.
StubHub operates an online ticket resale marketplace within a competitive live-events sector that includes primary sellers like Live Nation Entertainment’s Ticketmaster, as well as resale platforms such as SeatGeek. 4
The company runs its marketplace as StubHub in North America and uses the viagogo brand overseas, according to an Intellectia.ai summary referencing PR Newswire. The platform supports 33 languages and processes payments in 48 currencies, the summary noted. 5
The claims haven’t faced court scrutiny yet, and companies frequently move to dismiss IPO lawsuits early on, contending the offering documents were sufficient or the alleged omissions lacked material impact. When cases do proceed, they often drag on for years, with investors sometimes receiving little to nothing in the end.
The original class action, Salabaj v. StubHub Holdings, Inc., et al., No. 1:25-cv-09776, was filed in the U.S. District Court for the Southern District of New York. It targets purchasers of shares tied to the September IPO. The complaint alleges violations of the Securities Act of 1933, according to a Business Wire notice. 6
