Hub Cyber Security ($HUBC) $11M Investor Settlement
Hub Cyber Security ($HUBC) has reached a $11M settlement with investors over claims that it misled the public about its business operations, revenue prospects, and internal controls following its SPAC merger.
Outline:
Hub Cyber Security went public through a SPAC merger while promoting strong revenue growth and major government contracts. Investors later alleged the company overstated its business prospects and failed to disclose accounting and control problems. As financial reporting issues and an auditor resignation came to light, the stock fell sharply. Investors filed suit and the company later reached a tentative settlement.
Timeline:
March 1, 2023: Hub Cyber Security completed its SPAC merger and began trading as $HUBC.
March–July 2023: The company promoted revenue projections and strategic growth.
August 1, 2023: Hub announced its auditor had resigned over accounting concerns.
October 10, 2023: Hub disclosed material weaknesses in internal controls.
October 2023–January 2024: $HUBC dropped more than 85% from its post-merger price.
January 2024: Investors filed a securities class action lawsuit.
December 2025: The company agreed to a tentative settlement pending court approval.
Background:
Hub Cyber Security is an Israeli cybersecurity company that went public in March 2023 through a merger with a special purpose acquisition company. Following the listing, the company promoted strong revenue projections and highlighted what it described as major customer relationships, including work tied to U.S. government agencies.
Investors later alleged these statements overstated the company’s operational strength and revenue visibility. According to the claims, the company did not adequately disclose risks related to its accounting practices and financial reporting systems.
In August 2023, Hub announced that its auditor had resigned due to concerns related to accounting matters. Two months later, the company disclosed material weaknesses in its internal controls and acknowledged problems with the reliability of its financial reporting.
These disclosures triggered a sharp decline in $HUBC, which fell more than 85% from its post-merger trading levels within months. Investors alleged the company misled the market about its business model, financial integrity, and internal controls.
What Can Investors Expect Now?
Hub Cyber Security has reached a settlement with $HUBC investors to resolve claims tied to statements about its operations, revenue prospects, and internal controls following its SPAC merger.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
Holders of Mount Rainier securities or Legacy Hub securities that were converted into Hub Securities on or about March 1, 2023 as part of the Business Combination; and (ii) all persons and entities that purchased Hub Securities in the open market during the period from March 1, 2023 through July 31, 2023, both dates inclusive, and were damaged thereby
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.