Core Viewpoint - StubHub Holdings, Inc. is facing a securities fraud class action lawsuit due to alleged misleading information in its IPO offering documents, particularly regarding free cash flow and vendor payment timing [2][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who purchased securities during StubHub's September 2025 IPO, claiming the company failed to disclose significant changes affecting free cash flow [2]. - Allegations include that the changes in vendor payment timing had a substantial adverse impact on free cash flow, leading to materially misleading reports [2]. Group 2: Financial Impact - In its first earnings report post-IPO on November 13, 2025, StubHub reported a free cash flow of negative $4.6 million for Q3 2025, a 143% decrease from the previous year's positive $10.6 million [3]. - Following this earnings report, StubHub's stock price dropped by $3.95 per share, approximately 21.0%, from $18.82 to $14.87 [3]. - By November 24, 2025, the stock price further declined to $12.01, nearly 50% below the IPO price of $23.50 per share [4].