Core Viewpoint - The StubHub class action lawsuit alleges that the company and its executives misled investors during its IPO by failing to disclose significant changes affecting its cash flow, leading to substantial financial losses for shareholders [1][3][4]. Group 1: Class Action Lawsuit Details - The lawsuit, titled Salabaj v. StubHub Holdings, Inc., was initiated by investors who purchased StubHub common stock during its IPO on September 17, 2025, where approximately 34 million shares were issued at $23.50 per share [1][2]. - Investors have until January 23, 2026, to seek appointment as lead plaintiff in the class action lawsuit [1]. Group 2: Allegations Against StubHub - The lawsuit claims that StubHub's IPO offering documents were materially false and misleading, omitting critical information about changes in payment timing to vendors that adversely affected free cash flow [3]. - StubHub reported a free cash flow of negative $4.6 million for Q3 2025, marking a 143% decrease year-over-year, and a 69.3% decrease in net cash provided by operating activities [3]. - Following the release of these financial results, StubHub's stock price dropped nearly 21%, and by the time the lawsuit commenced, the stock was trading at $10.31 per share, a decline of nearly 56% from the IPO price [3][4]. Group 3: Legal Process and Firm Background - The Private Securities Litigation Reform Act of 1995 allows any investor who acquired StubHub stock during the IPO to seek lead plaintiff status, representing the interests of the class [5]. - Robbins Geller Rudman & Dowd LLP, the law firm handling the case, is recognized as a leading firm in securities fraud litigation, having recovered over $2.5 billion for investors in 2024 alone [6].
Robbins Geller Rudman & Dowd LLP Announces that StubHub Holdings, Inc. Investors with Significant Losses Have Opportunity to Lead Class Action Lawsuit - STUB