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StubHub (STUB) Slapped with Securities Lawsuit Over IPO Disclosures -- Hagens Berman

Class Action Targets Offering Documents for Failure to Disclose “Known Trends” Adversely Affecting Operations and Liquidity

SAN FRANCISCO--(BUSINESS WIRE)--National shareholder rights law firm Hagens Berman is issuing a reminder to investors in StubHub Holdings, Inc. (NYSE: STUB) ahead of the January 23, 2026, deadline of their opportunity to seek appointment as lead plaintiff in the pending securities class action lawsuit.

The complaint alleges that the Registration Statement was materially flawed because it failed to disclose the known trends regarding vendor payments, causing the stock to collapse shortly after the IPO.

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The litigation centers on allegations that StubHub’s highly anticipated September 2025 Initial Public Offering (IPO) was launched using Offering Documents that contained material misstatements and omissions. Specifically, the lawsuit alleges the company failed to disclose crucial “known trends, events, or uncertainties” that were already adversely impacting its Free Cash Flow (FCF)—a key liquidity metric touted to prospective investors.

“This litigation focuses on alleged violations of the Securities Act of 1933, which requires transparency for newly public companies. The complaint alleges that the Registration Statement was materially flawed because it failed to disclose the known trends regarding vendor payments, causing the stock to collapse shortly after the IPO,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation in this matter. “We urge investors in StubHub who purchased or otherwise acquired company shares pursuant to the IPO to contact the firm now.”

Legal Analysis: Alleged Undisclosed Vendor Payment Trends and IPO Disclosure Failures

The complaint focuses on the alleged misrepresentations and omissions within the core offering documents, which led to a substantial loss of market capitalization:

  • Securities Act of 1933 Liability: The lawsuit alleges the Registration Statement and Prospectus were materially flawed, making Defendants liable to investors who acquired shares pursuant to the IPO.
  • Concealment of Known Trends: The Offering Documents allegedly failed to disclose adverse changes in the timing of payments to vendors—an alleged known trend that directly impacted liquidity.
  • 143% Liquidity Collapse: The alleged omitted truth led to Q3 2025 results revealing Free Cash Flow was negative $4.6 million, marking a stunning 143% decline from the prior year. This revelation corrected the market's perception of the company's operational financial health.
  • Investor Damages: This disclosure caused the stock to fall well below the IPO price resulting in compensable damages for investors who acquired shares traceable to the IPO.

Next Steps: Contact Partner Reed Kathrein Today

Hagens Berman has a proven track record, securing significant recoveries for investors.

Mr. Kathrein and the firm’s investor fraud team are actively advising investors who purchased STUB shares pursuant and/or traceable to the IPO and suffered significant losses due to the alleged undisclosed financial trends.

The Lead Plaintiff Deadline is January 23, 2026.

TO SUBMIT YOUR STUBHUB (STUB) INVESTMENT LOSSES NOW, PLEASE USE THE SECURE FORM BELOW:

If you’d like answers to frequently asked questions about the StubHub case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding StubHub should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email STUB@hbsslaw.com.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contacts

Reed Kathrein, 844-916-0895

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Hagens Berman

NYSE:STUB
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Contacts

Reed Kathrein, 844-916-0895

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