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Eventbrite, Inc.

24 days left to seek lead plaintiff status

Case Summary

Company Name
Eventbrite, Inc.
Stock Symbol
EB
Class Period
Purchasers of Eventbrite securities between September 20, 2018 and March 7, 2019, including purchasers pursuant to the Registration Statement for the Company’s September 20, 2018 initial public offering
Motion Deadline
June 14, 2019
Court
Northern District of California

The complaint charges Eventbrite, certain of its officers and directors and the underwriters of its September 2018 initial public offering (“IPO”) with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933.  Eventbrite provides a platform to enable creators to plan, promote and produce live events.  In September 2017, Eventbrite acquired Ticketfly, LLC from Pandora Media, Inc. for $201.1 million in order to expand its music-related event solutions.

On September 18, 2018, Eventbrite filed the final amendment to its Registration Statement on Form S-1 with the SEC, which was declared effective September 19, 2018.  On September 20, 2018, Eventbrite sold 11.5 million shares of Class A common stock at $23 per share in the IPO for net proceeds of approximately $246 million. 

The complaint alleges that throughout the Class Period and in the Registration Statement issued in connection with the IPO, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and prospects.  Specifically, defendants failed to disclose that the Company’s migration of customers from Ticketfly to Eventbrite was progressing slower than expected and, as a consequence, the Ticketfly integration would take longer than expected and the Company’s revenue and growth would be negatively impacted.  As a result of this information being withheld from the market, Eventbrite securities traded at artificially inflated prices during the Class Period, with the price of Eventbrite stock reaching more than $38 per share.

Then on March 7, 2019, Eventbrite reported its annual financial results, disclosing in a letter to shareholders that the Company’s growth rate would be negatively impacted while it integrated Tickefly and announcing that it expected first quarter 2019 revenue of between $80 and $84 million, below analysts’ forecasts of $91 million for the quarter.  In a related conference call, Eventbrite’s Chief Executive Officer and co-founder, Julia Hartz, stated that the strategy to integrate Ticketfly “will impact revenues in the short-term.”  On this news, shares of Eventbrite stock fell $7.96 per share, or over 24%, to close at $24.46 per share on March 8, 2019.

Class Period: Purchasers of Eventbrite securities between September 20, 2018 and March 7, 2019, including purchasers pursuant to the Registration Statement for the Company’s September 20, 2018 initial public offering -
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