Core Viewpoint - A class action lawsuit has been filed against StubHub Holdings, Inc. for allegedly misleading investors during its September 2025 IPO regarding its financial health and cash flow situation [4]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who purchased securities based on the offering documents from the September 2025 IPO [4]. - Allegations include failure to disclose changes in vendor payment timing, which adversely affected free cash flow [4]. - The lawsuit claims that the free cash flow reports were materially misleading, impacting the integrity of the IPO offering documents [4]. Group 2: Financial Impact - StubHub reported a free cash flow of negative $4.6 million for Q3 2025, a 143% decrease from the previous year's positive free cash flow of $10.6 million [5]. - Following this earnings report, StubHub's share price dropped by $3.95, or approximately 21.0%, from $18.82 to $14.87 [5]. - By November 24, 2025, StubHub's stock price fell to $12.01, nearly 50% below the IPO price of $23.50 [6].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against StubHub Holdings, Inc. due to allegations of misleading information in its registration statement for the IPO held on September 17, 2025 [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 $23.50 per share [6]. - By the commencement of the legal action, StubHub's stock was trading as low as $10.31 per share, representing a nearly 56% decline 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, a 143% decrease from the previous year's positive free cash flow of $10.6 million [7]. - The company's net cash provided by operating activities was only $3.8 million, a 69.3% decrease from the prior year's $12.4 million [7]. Group 3: Legal Allegations - The class action complaint alleges that the registration statement was materially false and misleading, failing to disclose significant adverse facts about the company's business and operations [5]. - Specific allegations include undisclosed changes in the timing of payments to vendors, which adversely impacted free cash flow and rendered previous positive statements about the company's prospects misleading [5].

The lawsuit has been filed on behalf of investors who purchased securities pursuant to the registration statement and prospectus (collectively "offering documents†) issued in connection with the Company's September 2025 initial public offering ("IPO†). The lawsuit alleges that, in connection with its IPO, StubHub failed to disclose to investors that: (1) the Company was experiencing changes in the timing of payments to vendors; (2) those changes had a significant adverse impact on free cash flow, includ ...

Company Overview - StubHub plans to launch its initial public offering (IPO) in September, with a roadshow expected to start after Labor Day [2][3] - The company has updated its IPO filing with the SEC, indicating a potential return to the market after previously pausing its plans due to stock market turmoil [3][6] Financial Performance - For the quarter ended March 31, StubHub reported a net loss of $35.9 million on revenue of $397.6 million, compared to a net loss of $29.7 million on revenue of $360.1 million a year earlier, indicating higher losses and revenue [4] IPO Details - StubHub filed a registration statement on Form S-1 with the SEC for its proposed IPO, planning to list its Class A common stock on the NYSE under the ticker symbol STUB, but has not yet determined the number of shares or price range for the offering [5] - The company is looking to raise over $1 billion in its IPO [6] Market Context - Investment banks expect IPO activity to increase in the second half of the year, driven by reduced market volatility and regulatory easing [7]