StubHub Shareholders Sue Over Alleged Hidden Vendor Payment Shift

StubHub told investors the story everyone wanted to hear. A global marketplace. Huge demand. Strong cash flow. A fresh IPO in September. It all sounded like the perfect ticket to growth.

But the truth showed up fast.

Just weeks later, on November 13, 2025, StubHub revealed free cash flow had flipped to negative $4.6 million. That was a drop of about 140% from the year before. The company also admitted operating cash collapsed nearly 70%. And executives blamed it on the timing of payments to vendors, something the lawsuit says they should have disclosed before the IPO.

Investors were stunned. The stock fell about 20% in a single day and kept sliding, losing more than half its value.

Now, more investors are joining the lawsuit.