Class Action Reports

Levi & Korsinsky Announce EB Lawsuit; EB Class Action

Levi & Korsinsky, LLP

May 3, 2019

Gomes v. Eventbrite, Inc. et al 5:19-cv-02019-EJD — On April 15, 2019, investors sued Eventbrite, Inc. (“Eventbrite” or the “Company”) in United States District Court, Northern District of California. The EB class action alleges that plaintiffs acquired Eventbrite stock based on a Registration Statement wrongfully issued in connection with the Company’s September 2018 IPO; and/or acquired Eventbrite stock at artificially inflated prices between September 20, 2018 and March 7, 2019 (the “Class Period”). Plaintiffs are now seeking compensation for financial losses sustained upon public revelation of the Company’s alleged misconduct during that time. For more information on the EB lawsuit, please contact us today!

Summary of the Allegations

Company Background

Eventbrite (NYSE: EB) says it facilitates live events by providing a “powerful, broad technology platform” that allows organizers to “plan, promote and produce live events.” Specifically, the Company claims that its platform allows event organizers to do so in a manner that minimizes complication and maximizes profit.

In all, Eventbrite claims, its platform powered nearly 4 million events – including “live experiences” in more than 170 countries – in 2018. The Company also says that more than 795,000 event creators used its platform last year.

Summary of Facts

The Company and two of its senior officers and/or directors (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding critical  information about Eventbrite’s business practices, operations and prospects, during the Class Period.

Specifically, they are accused of omitting truthful information about complications stemming from Eventbrite’s September 2017 acquisition of Ticketfly from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Eventbrite stock to trade at artificially inflated prices during the time in question.

Along with the Individual Defendants, eight Eventbrite directors who either signed or authorized the signing of the Registration Statement in question; and six companies that served as underwriters for the IPO in question, are also named as defendants in the complaint.

The truth emerged after the market closed on March 7, 2019. At that time, the Company issued a letter to shareholders indicating that Eventbrite’s “growth rate would be negatively impacted while it integrated Ticketfly.”

A closer look…

As alleged in the April 15 complaint, the Registration Statement was “negligently prepared.” Consequently, it was “materially false and misleading.”

As also alleged in the April 15 complaint, the Company and/or Individual Defendants repeatedly made false and misleading public statements during the Class Period.

For example, in a letter to shareholders issued on November 12, 2018, the Company stated in pertinent part: “Revenues grew by 45.1% to $73.6 million in the third quarter, with both Eventbrite platform growth and acquired businesses contributing to the increase in total sales.”

In the same letter, the Company also stated: “Gross profit increased by 41.7 % to $42.2 million. Gross margin was 57.2 %, down 140 basis points year-over-year due to amortization related to the Ticketfly platform.”

Finally, in the same letter, Eventbrite told its shareholders: “Our strategy is to operate a single technical platform globally, which means that we work to migrate customers from acquired platforms to the Eventbrite platform. This migration process has historically taken 12 to 24 months, over which the Eventbrite team engages with customers to support this process.”

Two days later, the Company filed a form with the SEC in which it “reaffirmed the previously reported third quarter 2018 financial results.”

Impact of the Alleged Fraud on GM’s Stock Price and Market Capitalization

Closing stock price prior to disclosures:


Closing stock price the trading day after disclosures:


One day stock price decrease (percentage) as a result of disclosures:



The following chart illustrates the stock price during the class period:

 EB Class Action EB Lawsuit

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is June 17, 2019. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Eventbrite common stock using court approved loss calculation methods.

Recently Filed Cases

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

EB Class Action EB Lawsuit

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.