Overview

A class action lawsuit has been filed against StubHub Holdings, Inc. (“StubHub” or the “Company”) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws. The Company’s shares trade on the New York Stock Exchange (“NYSE”) exchange under the symbol “STUB.”

The StubHub class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired StubHub common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s September 2025 initial public offering (“IPO” or the “Offering”).

The lawsuit alleges that StubHub Holdings, Inc., and its executives misled investors in connection with the company’s initial public offering and subsequent disclosures. StubHub operates a global online marketplace where fans purchase tickets for live events through its StubHub and viagogo platforms.

On September 17, 2025, just two weeks before the end of the third quarter—the company filed a prospectus on Form 424B4 in connection with its IPO, through which it sold more than 34 million shares of Class A common stock at $23.50 per share. StubHub received approximately $758 million in net proceeds, which it stated would be used to repay debt, satisfy tax obligations, support working capital and operations, and pursue strategic investments.

According to the lawsuit, the materials offered were materially false and misleading. The company allegedly failed to disclose that it was experiencing significant changes in the timing of payments to vendors, which were adversely affecting free cash flow and operating cash generation. As a result, StubHub’s reported free cash flow metrics were misleading, and the company’s statements regarding its financial condition and prospects lacked a reasonable basis.

The truth began to emerge on November 13, 2025, when StubHub reported its third quarter 2025 financial results. The company disclosed negative free cash flow of $4.6 million, compared to positive free cash flow of $10.6 million in the same quarter the prior year—a 143 percent decline. StubHub also reported that net cash provided by operating activities fell to $3.8 million, down 69.3 percent from the $12.4 million reported a year earlier. In its Form 10-Q filed the same day, the company attributed the sharp decline to changes in vendor payment timing.

On this news, StubHub’s stock price dropped nearly 21 percent, closing at $14.87 per share on November 14, 2025. By the time the lawsuit was filed, the stock had fallen as low as $10.31 per share—down approximately 56 percent from the IPO price.

Furthermore, the lawsuit alleges that, as a result of StubHub’s materially false and misleading statements and omissions, investors purchased shares at artificially inflated prices and suffered substantial losses when the truth regarding the company’s deteriorating cash flow position was revealed.

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If you purchased or otherwise acquired StubHub common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s September 2025 initial public offering (“IPO” or the “Offering”), you may be eligible to serve as lead plaintiff in this lawsuit. If you invested in StubHub securities and wish to seek appointment as lead plaintiff, we encourage you to contact DiCello Levitt LLP by submitting your information through the form on this page.

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the StubHub class action lawsuit is January 23, 2026.