Key Takeaways
A securities fraud class-action lawsuit has been filed against Sportradar Group AG (SRAD) after reports alleged the sports data company worked with illegal gambling operators, erasing nearly a quarter of the company's market value.
According to the lawsuit filed by Kessler Topaz Meltzer & Check, LLP, defendants made false and/or misleading statements and failed to disclose that Sportradar intentionally worked with black-market gambling operators to increase its revenues, despite its assurances of strict legal and regulatory compliance.
The allegations surfaced in reports from Muddy Waters Research and Callisto Research on April 22, 2026. The Muddy Waters report claimed Sportradar "has actively aided and abetted illegal gambling across the world's black and grey markets... as a business strategy." Following the reports, Sportradar's shares fell $3.80, or 22.6 percent, to close at $13.04 per share.
The lawsuit covers investors who purchased Sportradar Class A ordinary shares between November 7, 2024, and April 21, 2026. The deadline for investors to move the Court to serve as lead plaintiff is July 17, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
The legal action against Sportradar has grown, with firms including Rosen Law Firm, Glancy Prongay Wolke & Rotter LLP, and Kahn Swick & Foti, LLC also reminding investors of the deadline to join the class action. The complaint alleges that the company's Know-Your-Customer (KYC) and compliance processes were not as robust as claimed. Callisto Research stated it found evidence suggesting over 270 platforms are using Sportradar’s products while operating illegally.
The sharp stock decline and mounting lawsuits signal significant legal and financial risks for Sportradar. Investors will be watching for the company's official response and developments in the case leading up to the July 17, 2026, lead plaintiff deadline.
This article is for informational purposes only and does not constitute investment advice.
