Hub Cyber Security Successfully Settles Legacy Class Action Litigation and Removes Structural Friction to Accelerate Execution

Rhea-AI Summary

HUB Cyber Security (Nasdaq: HUBC) announced a planned settlement to resolve the legacy U.S. securities class action tied to its 2023 IPO for a total consideration of $11 million, subject to final court approval on Dec 10, 2025. The payment is to be financed primarily by HUB's insurance carriers, limiting the company's cash outlay. HUB said the settlement removes a structural barrier, allowing management to proceed with interim financial filings and a formal business update that will report H1 revenues and higher gross margins. The company characterizes the move as a strategic reset to accelerate execution and focus on confidential computing and secured data fabric opportunities.

Positive

• $11 million settlement largely covered by insurance
• Removal of legacy litigation as a structural barrier
• Plans to file interim financials showing H1 revenue and higher gross margins

Negative

• Settlement is subject to final court approval, creating timing and approval risk

Key Figures

Class action settlement $11 million Total consideration to resolve legacy U.S. securities class action

Settlement payment $11 million Payment contemplated under settlement, primarily financed by insurers

Private placement size $20 million Investor-led private placement financing capacity announced Aug 27, 2025

Warrants extended 68,837 shares 2022 warrants with new expiry on August 22, 2027

Warrant exercise price 744.12 NIS Exercise price for 2022 warrants (approx. $216.75)

Current share price $0.6823 Before-market context on Dec 10, 2025, near 52-week low

52-week high $14 HUBC trading 95.13% below this level pre-announcement

52-week low $0.633 Price 7.79% above 52-week low prior to this news

Market Reality Check

$0.6823 Last Close

Volume Volume 2,371,232 is about 1.54x the 20-day average of 1,538,812, signaling elevated trading interest ahead of/around this announcement. high

Technical Shares at $0.6823 are trading well below the 200-day MA of $2.62 and 95.13% under the 52-week high, near the 52-week low at $0.633.

Peers on Argus 1 Down

HUBC fell 20.52% while peers showed mixed moves: MCRP up 14.94%, VHC up 17.24%, JG and UBXG modestly down. Momentum scanner flagged only XBP down 11.28%, indicating HUBC’s decline appears more stock-specific than sector-driven.

Common Catalyst One peer, JG, also reported a security-focused product update, but peer news flow and price action do not indicate a broad sector event driving HUBC’s move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Product launch & deal	Positive	-20.5%	Launch of HUB Compliance and disclosure of multi-year aerospace defense deal.
Dec 08	Platform positioning	Positive	+1.0%	Described HUB Compliance framework turning regulatory pressure into speed.
Dec 08	Commercial expansion	Positive	+1.0%	New commercial contract and international expansion of confidential computing engine.
Dec 05	Commercial win update	Positive	-17.1%	Major commercial win tied to defense-grade confidential computing stack.
Dec 05	Global rollout news	Positive	-17.1%	Commercial rollout of HUB Compliance aimed at regulated finance institutions.

Pattern Detected

Recent positive-sounding product and commercial updates have often coincided with sharp negative price reactions, suggesting a pattern where upbeat narratives have not translated into sustained strength.

Recent Company History

Over the last week, HUB Cyber Security released multiple announcements positioning HUB Compliance™ and its confidential computing stack as infrastructure for regulated finance and digital trust. These included commercial wins with defense-aligned buyers and a global rollout narrative. Despite this, shares saw sharp declines of -17.06% and -20.52% around some of these updates. Today’s settlement of the legacy 2023 IPO class action fits into a broader effort to clean up past issues while promoting a more scalable, institutional narrative.

Market Pulse Summary

This announcement resolves a legacy U.S. securities class action related to HUB’s 2023 IPO with a total consideration of $11 million, primarily covered by insurance. It removes a legal overhang as the company advances interim financial filings and a business update highlighting H1 revenues and higher gross margins. Recent regulatory filings show additional financing capacity and extended warrant maturities, factors that shape capital flexibility. Investors may watch upcoming financials, execution on commercial wins, and how management translates its confidential computing strategy into measurable growth.

Key Terms

confidential computing technical

"a global leader in confidential computing and secured data fabric technologies"

Confidential computing is a technology that keeps data secure while it is being processed or analyzed, even from the systems that run the calculations. Think of it like a locked box where sensitive information is kept safe inside, no matter what happens during the work. This helps protect private data from unauthorized access, making it especially important for businesses and investors concerned about data privacy and security.

secured data fabric technical

"a global leader in confidential computing and secured data fabric technologies"

A secured data fabric is a comprehensive system that connects and manages data across different sources while ensuring that information remains protected from unauthorized access. Think of it as a secure digital network that safely links all your data, making it easier to access and analyze while keeping sensitive information safe. This matters to investors because it helps organizations make faster, more informed decisions without risking data breaches or leaks.

class action regulatory

"resolve the legacy U.S. securities class action related to its 2023 IPO"

A class action is a lawsuit where a group of people with similar complaints sue a company together instead of each person filing separately; think of it as a neighborhood banding together to take one case to court rather than everyone hiring separate lawyers. Investors care because class actions can lead to large settlements or judgments, damage a company’s reputation, drain cash reserves, and distract management — all of which can reduce a company’s stock value and affect future earnings.

private placement financial

"an investor-led private placement financing of up to $20 million"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

warrants financial

"extended the expiration of its 2022 warrants to purchase 68,837 ordinary shares"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

AI-generated analysis. Not financial advice.

TEL AVIV, Israel, Dec. 10, 2025 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (Nasdaq: HUBC) (“HUB” or the “Company”), a global leader in confidential computing and secured data fabric technologies, today announced a successful settlement which is intended to resolve the legacy U.S. securities class action related to its 2023 IPO. The settlement, which is subject to final court approval, is designed to close a legacy litigation chapter for a total consideration of $11 million, removing a structural barrier and enabling the Company to operate and focus on its growing business with uncompromised priority.

The settlement agreement contemplates a payment of $11 million, financed primarily by HUB’s insurance carriers, ensuring the Company’s cash outlay is thoughtfully addressed, supporting operational priorities and continued execution.

HUB has been represented in these proceedings by the law firm, Pillsbury Winthrop Shaw Pittman. HUB believes that the settlement of this legacy class action is a positive outcome for the Company, allowing it to focus on its ongoing and future business interests.

The Company is now advancing the filing of its interim financials and preparing a formal business update that reflects a stronger, more disciplined, and aligned-for-scale value of HUB. The Company's financials will reflect HUB's revenues for H1, with higher gross margins.

“This is a strategic reset. The past will be closed. What remains is our mandate: securing the world’s most sensitive digital assets with precision and discipline,” said Noah Hershcoviz, CEO of HUB Cyber Security. “We are operating in a world where national security, financial infrastructure, and artificial intelligence depend on trust, and trust cannot coexist with uncertainty. By resolving this litigation, we remove the final legacy distractions and accelerate toward full operational velocity. Our mission forward is to build the secure backbone of next-generation computing.”

About HUB Cyber Security Ltd.

HUB Cyber Security Ltd. (Nasdaq: HUBC) is a global leader in confidential computing, AI-driven data fabric, and cybersecurity. HUB's Secured Data Fabric (SDF) empowers organizations to virtualize, secure, and analyze sensitive data across borders and silos generating real-time intelligence while meeting the highest regulatory standards. With operations across North America, Europe, and Israel, HUB partners with Fortune 100 companies, global banks, and sovereign institutions to secure the next generation of digital infrastructure.

Forward-Looking Statements

This press release contains forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “future,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “seem,” “should,” “will,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements are based on the current expectations of the management of HUB, as applicable, and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC by HUB and the following: (i) significant uncertainty regarding the adequacy of HUB’s liquidity and capital resources and its ability to repay its obligations as they become due; (ii) the war between Israel and Hamas commenced in October 2023, which may harm Israel’s economy and HUB’s business; (iii) expectations regarding HUB’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and HUB’s ability to invest in growth initiatives and pursue acquisition opportunities; (iv) the outcome of any legal or regulatory proceedings against HUB in connection with our previously announced internal investigation or otherwise; (v) the ability to meet stock exchange continued listing standards and remain listed on the Nasdaq; (vi) competition, the ability of HUB to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (vii) limited liquidity and trading of HUB’s securities; (viii) geopolitical risk, including military action and related sanctions, and changes in applicable laws or regulations; (ix) the possibility that HUB may be adversely affected by other economic, business, and/or competitive factors; and (x) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in HUB’s Annual Report on Form 20-F filed on May 1, 2025.

Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of HUB prove incorrect, actual results may vary in material respects from those expressed or implied in these forward-looking statements.

All subsequent written and oral forward-looking statements concerning HUB or other matters addressed in this press release and attributable to HUB or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in the press release. Except to the extent required by applicable law or regulation, HUB undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events.

Investor Relations

Lytham Partners
Ben Shamsian
646-829-9701
shamsian@lythampartners.com

FAQ

What did HUB Cyber Security (HUBC) announce on December 10, 2025?

HUBC announced a planned settlement of a legacy U.S. securities class action for $11 million, subject to final court approval.

How will HUBC fund the $11 million settlement announced Dec 10, 2025?

The settlement payment is financed primarily by HUBC's insurance carriers, limiting the company's direct cash outlay.

What impact does the HUBC settlement have on operations and filings?

The company said the settlement removes a structural barrier, enabling interim financial filings and a formal business update focused on growth.

Will HUB Cyber Security report financial results after the settlement?

Yes; HUBC is advancing interim financials that will reflect H1 revenues and higher gross margins.

Is the HUBC settlement final and effective today?

No; the settlement is described as subject to final court approval, so it is not final until approved by the court.