Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against StubHub Holdings, Inc. due to allegations of misleading information in their registration statement during the IPO process, which has led to significant financial losses for investors [2][5]. Group 1: Company Overview - StubHub conducted its IPO on September 17, 2025, selling approximately 34 million shares of Class A common stock at a price of $23.50 per share [6]. - By the commencement of the legal action, StubHub's stock had declined to as low as $10.31 per share, representing a nearly 56% decrease from the IPO price [9]. Group 2: Financial Performance - In the third quarter of 2025, StubHub reported a free cash flow of negative $4.6 million, which is a 143% decrease compared to the positive free cash flow of $10.6 million in the same period the previous year [7]. - The company's net cash provided by operating activities was only $3.8 million, reflecting a 69.3% decrease from the $12.4 million reported in the prior year [7]. - The decline in free cash flow was attributed to changes in the timing of payments to vendors, which was not disclosed to investors [8]. Group 3: Legal Action - A federal securities class action has been filed against StubHub, with a deadline of January 23, 2026, for investors to seek the role of lead plaintiff [2]. - The complaint alleges that the registration statement was materially false and misleading, failing to disclose adverse facts about the company's business and operations [5].
SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of StubHub