Sportradar Group is facing a class-action lawsuit from investors seeking damages for losses incurred between November 2024 and April 2026.
The suit was filed on Monday, 18 May by plaintiff class-action law firm Kessler Topaz Meltzer & Check (KTMC) on behalf of investors who bought class A shares in Sportradar during the “class period”.
The investors allege Sportradar intentionally misled them regarding the robustness of the supplier’s due diligence and compliance processes in the wake of two short seller reports published in April.
Sportradar’s share price plummeted after market research firms Muddy Waters Research and Callisto Research, separately published reports detailing what they alleged was the firm’s links to a network of black market operators.
Muddy Waters estimated between 10% and 40% of Sportradar revenue was derived from its black market connections, while Callisto suggested 30% to 40%.
Callisto said it had shared its findings with multiple regulators, adding that three of these bodies have already placed Sportradar under review.
Following the publications, Nasdaq-listed Sportradar’s share price closed at $16.84 on 21 April, before falling to $13.04 the following day, constituting a drop of 22.6%. The stock has remained around those levels since then.
Sportradar strenuously has denied any wrongdoing, insisting the short sellers were “trying to erase shareholder value and profit from stock disruption”.
At the end of April, management said a “low- to mid-single digit” portion of its revenue is exposed to “grey markets”, as the supplier was at pains to stress it does not work with black market bookmakers.
In a statement announcing the class action, KTMC said: “Defendants misrepresented and/or failed to disclose that: Sportradar intentionally worked with black market gambling operators to increase its revenues, despite its assurances of strict legal and regulatory compliance and claims that ethics and integrity were crucial for Sportradar’s operations; the company’s KYC and compliance processes were not as robust as defendants had claimed; and as a result, defendants’ statements about the company’s business, operations, and prospects lacked a reasonable basis.”
Sportradar declined to comment when contacted by EGR.
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Legal claim alleges sports data giant misled the market about its regulatory integrity following short seller reports on black market activity, contributing to a 23% plunge in its share price last month
The post Sportradar hit with class-action lawsuit over investor losses first appeared on EGR Intel.