Core Viewpoint - The StubHub class action lawsuit alleges that the company and its executives misled investors regarding the financial health of the company during its IPO, leading to significant stock price declines after the release of disappointing financial results [3][4]. Group 1: Class Action Lawsuit Details - The lawsuit, titled Salabaj v. StubHub Holdings, Inc., claims that StubHub and its executives violated the Securities Act of 1933 during the IPO process [1]. - Investors who purchased StubHub common stock during the IPO, which occurred on September 17, 2025, at an offering price of $23.50 per share, have until January 23, 2026, to seek appointment as lead plaintiff [2][5]. - The lawsuit alleges that the IPO's offering documents were materially false and misleading, particularly regarding changes in payment timing to vendors that adversely affected free cash flow [3]. Group 2: Financial Performance and Impact - StubHub reported a free cash flow of negative $4.6 million for Q3 2025, marking a 143% decrease year-over-year, and a net cash provided by operating activities of only $3.8 million, a 69.3% decrease [3]. - Following the release of these financial results on November 13, 2025, StubHub's stock price fell nearly 21% [3]. - By the time the class action lawsuit commenced, StubHub's stock price had dropped to as low as $10.31 per share, representing a nearly 56% decline from the IPO price [4]. Group 3: Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [6]. - The firm has been recognized for its significant recoveries in securities class action cases, including the largest recovery in history of $7.2 billion in the Enron case [6].
Robbins Geller Rudman & Dowd LLP Announces that StubHub Holdings, Inc. (STUB) Investors with Significant Losses Have Opportunity to Lead Class Action Lawsuit