Sportradar Hit With Class Action Lawsuit Following $800M Market Value Loss
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Sports data and betting technology provider Sportradar is facing a securities class action lawsuit in the United States following allegations made by activist short sellers earlier this year. The lawsuit seeks to represent investors who purchased the company’s shares between November 7, 2024, and April 21, 2026.
According to court filings, the complaint alleges that Sportradar made misleading statements regarding its compliance practices and business relationships. The suit also names founder and CEO Carsten Koerl and CFO Craig Felenstein as defendants.
Short Seller Reports Sparked Market Reaction
The legal action follows reports published on April 22 by Muddy Waters Research and Callisto Research. Both firms alleged that Sportradar generated a significant portion of its revenue through relationships with operators active in unlicensed or grey-market gambling jurisdictions.
Following the publication of the reports, Sportradar shares fell approximately 22% in a single trading session, wiping more than $800 million from the company’s market capitalization.
Company Rejects Allegations
Sportradar has denied the accusations made by the short sellers. The company stated that the reports contained factual inaccuracies and maintained that it works exclusively with licensed operators. CEO Carsten Koerl also defended the company’s compliance framework in a message to shareholders issued after the reports were published.
The company has not publicly commented on the class action lawsuit itself.
Lead Plaintiff Deadline Set for July
The lawsuit is being promoted by law firm Hagens Berman Sobol Shapiro LLP, which is encouraging affected investors to participate in the case. The deadline for investors seeking lead plaintiff status is July 17, 2026.
While the allegations remain unproven, the case adds further pressure on Sportradar as the company works to reassure investors and defend its business practices following one of the sharpest stock declines in its recent history.
Source: https://www.prnewswire.com/news-releases/sportradar-group-ag-srad-securities-class-action-filed-amid-activist-short-seller-accusations-of-illegal-business-model-and-800-million-market-cap-wipeout–hbss-302778466.html
