Overview
- Short‑seller reports published April 22, 2026 by Muddy Waters and Callisto accused Sportradar of courting illegal or unlicensed gambling operators and sparked a roughly 22.6% one‑day share plunge.
- A federal securities class action, Smale v. Sportradar Group AG, is pending in the Southern District of New York and investors have until July 17, 2026 to move to be appointed lead plaintiff.
- The complaint alleges Sportradar intentionally worked with black‑market operators to boost revenue and that the company's public descriptions of its Know‑Your‑Customer and compliance controls were false or overstated.
- Short sellers quantified alleged exposure, with Muddy Waters estimating about 20–40% of revenue could come from illegal operators and Callisto reporting evidence on more than 270 platforms, and media report regulators in North America and Europe are conducting reviews.
- Multiple plaintiff firms are actively soliciting clients to seek lead‑plaintiff status, which will determine who steers the litigation and could lead to revenue restatements, enforcement actions or investor recoveries if the claims are sustained.