Sportradar Faces Shareholder Probes After Short-Seller Reports and 22% Stock Rout

Overview

• Hagens Berman opened a probe into Sportradar’s pre-April 22 disclosures after Wednesday’s 22% share plunge wiped out more than $800 million in value.
• Johnson Fistel launched a separate investigation that targets statements by executive officers and invites investors with losses to contact the firm.
• The claims center on Sportradar supplying services to betting operators in banned markets, which conflicts with its pledge to work only with licensed clients and its touted four-level know-your-customer program.
• Muddy Waters said undercover work, website code analysis, and 15 interviews show the company aiding illegal markets and estimated 20% to 40% of revenue from such operators.
• Callisto reported that more than 270 of about 800 platforms tied to Sportradar use its tools while operating in prohibited or unlicensed markets, and both law firms are now seeking tips and loss claims.