Sportradar Group AG Faces Class Action Lawsuit Over Allegations of Illegal Business Practices
Sportradar Group AG (SRAD) Facing Securities Class Action Amid Activist Short Seller Accusations of Illegal Business Model and $800 Million Market Cap Wipeout - HBSS
Image: Benzinga
Sportradar Group AG (NASDAQ:SRAD) is facing a securities class action lawsuit after a 22% drop in share price, which wiped out over $800 million in market capitalization. The lawsuit alleges the company misled investors about its business model, including working with illegal gambling operators.
- 01The class action lawsuit covers investors who acquired Sportradar shares between November 7, 2024, and April 21, 2026.
- 02Reports from Muddy Waters Research and Callisto Research claim Sportradar's revenue includes 20-40% from illegal gambling operations.
- 03Muddy Waters identified nearly 50 clients involved in illegal markets, while Callisto found over 270 platforms using Sportradar's services illegally.
- 04The lawsuit alleges that Sportradar's assurances of legal compliance were false, impacting investor trust.
- 05Hagens Berman, the law firm leading the investigation, has previously secured over $2.9 billion for clients in corporate accountability cases.
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Sportradar Group AG (NASDAQ:SRAD) is embroiled in a securities class action lawsuit following a significant decline in its share price, which fell by 22% on April 22, 2026, resulting in a loss of over $800 million in market capitalization. The lawsuit, initiated by Hagens Berman, targets investors who purchased Sportradar Class A ordinary shares between November 7, 2024, and April 21, 2026. Allegations have emerged from activist short sellers Muddy Waters Research and Callisto Research, who claim that Sportradar misled investors about its business practices, particularly regarding its dealings with black-market gambling operators. Muddy Waters' investigation suggested that illegal operators contribute 20-40% of Sportradar's revenue, while Callisto found that over 270 gambling platforms using Sportradar's services operate illegally. The firm is now encouraging affected investors to come forward as it investigates the potential violations of federal securities laws.
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The lawsuit could significantly affect Sportradar's reputation and investor confidence, potentially leading to further financial losses.
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