SAN FRANCISCO, Nov. 26, 2025 (GLOBE NEWSWIRE) -- Ticket resale giant StubHub Holdings, Inc. (NYSE: STUB) is facing a proposed securities class action stemming from its highly anticipated initial public offering just weeks before it released disappointing third-quarter results.
Hagens Berman is investigating whether StubHub’s IPO materials were misleading and urges investors in StubHub who purchased or otherwise acquired company shares pursuant to the IPO or on the open market to submit your losses now.
Class Period: Sept. 17, 2025 – Nov. 24, 2025
Lead Plaintiff Deadline: Jan. 23, 2026
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StubHub Holdings (STUB) Securities Class Action
The lawsuit, styled Salabaj v. StubHub Holdings, Inc., et al., No 1:25-cv-09776 (S.D.N.Y.), seeks to represent investors who acquired common shares in the company’s September 17, 2025, IPO. The offering saw StubHub issue approximately 34 million shares at $23.50 apiece.
Allegations of Misrepresented Financial Health
The litigation centers on allegations that StubHub’s IPO offering documents were negligently prepared and contained untrue statements while failing to disclose crucial information to prospective investors.
Specifically, the complaint alleges the company did not disclose “known trends, events or uncertainties” that were already having, or were likely to have, an adverse impact on StubHub’s operations and key financial metrics.
The plaintiffs highlight the company’s strong emphasis on “free cash flow” in the offering documents, which the company positioned as a “meaningful indicator of liquidity for management and investors.” This metric, according to the documents, was the amount of cash generated from operations that could be used for strategic initiatives.
Post-IPO Plunge
The narrative, according to the complaint, began to unravel on Nov. 13, 2025, when the company announced its Q3 2025 financial results.
- StubHub reported a negative free cash flow of $4.6 million, marking a staggering 143% decline from the prior year period.
- Net cash provided by operations plummeted to $3.8 million, a 69% decrease year-over-year.
- The company notably withheld Q4 2025 guidance, adding to investor uncertainty.
StubHub attributed the decline to “changes in timing of payments to vendors.” At the time of the earnings release, the company’s CFO commented, “From the outset, we anticipated that 2025 would present a more challenging growth environment for our market.”
The news triggered an immediate and sharp reaction in the market. StubHub shares were driven down approximately 20% in the subsequent trading session, closing at $14.87—more than 36% below the initial $23.50 IPO price.
Hagens Berman’s Investigation
Prominent shareholder rights firm Hagens Berman has opened an investigation into the alleged claims. The firm is specifically examining whether the IPO materials may have misled investors about the company’s market opportunity, growth prospects, and the scope of its regulatory scrutiny.
Reed Kathrein, the Hagens Berman partner leading the firm's investigation, commented on the situation, stating: “We’re focused on whether StubHub’s IPO materials may have misled investors about known trends in its business that, when disclosed in November, wiped out over $1 billion of market capitalization.”
If you invested in StubHub and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like answers to frequently asked questions about the StubHub case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding StubHub should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email STUB@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
