Sportradar Sued After 22% Stock Plunge

(AsiaGameHub) –   Sportradar Group AG is facing a significant legal challenge following a sharp decline in its stock price, reportedly linked to accusations of involvement in illegal gambling activities.

Up to 40% of Revenue Allegedly Derived from Unlicensed Operators 

The international securities law firm Bleichmar Fonti & Auld LLP has announced the filing of a class action lawsuit in the US District Court for the Southern District of New York against Sportradar and some of its senior executives.

The lawsuit alleges that the company engaged in securities fraud, claiming it provided misleading information to investors regarding its business practices and adherence to compliance standards.

This legal action follows a substantial market reaction to investigative reports published on April 22 by Muddy Waters and Callisto Research.

These reports asserted that Sportradar allegedly generated a considerable portion of its revenue from unlicensed or illegal operators, with estimates suggesting this exposure could represent between 20% and 40% of its total revenue.

The findings also indicated that US regulatory bodies had commenced a review of certain aspects of the company’s operations.

The reports prompted a significant sell-off, causing Sportradar’s shares to plummet by 22.6% in a single trading session, falling from $16.84 to $13.04.

The legal filing further states that investors who acquired Sportradar shares during the specified period are eligible to join the class action lawsuit, with July 17, 2026, set as the deadline for individuals seeking appointment as lead plaintiff.

The complaint cites violations of Sections 10(b) and 20(a) of the US Securities Exchange Act of 1934. The case, identified as Smale v. Sportradar Group AG, is currently pending in federal court.

Sportradar has previously denied these allegations, asserting that it operates under stringent compliance systems and exclusively partners with licensed betting operators.

The company also holds partnerships with prominent sports leagues, including the NBA, MLB, NHL, and PGA Tour.