Shareholders sue Sportradar after reports alleged extensive illegal gambling operator relationships
Shareholders have filed a securities class action lawsuit against Sportradar, alleging the company misled investors about its compliance controls and relationships with illegal gambling operators.Summary
A proposed securities class action lawsuit was filed in Manhattan federal court on May 18, accusing Sportradar Group AG of misleading investors regarding its compliance controls and connections to illegal gambling operators. The suit, filed by investor James Anthony Smale on behalf of purchasers of Class A shares between November 7, 2024, and April 21, 2026, names the company, CEO Carsten Koerl, and CFO Craig Felenstein. The complaint alleges that Sportradar executives repeatedly assured investors that the company adhered to strict legal and regulatory standards, including detailed "Know-Your-Customer" screening procedures. However, following reports by Muddy Waters Research and Callisto Research in April 2026, which alleged that Sportradar actively facilitated illegal gambling in black and gray markets and served operators in prohibited jurisdictions, the company's stock plummeted 22.6%. Sportradar has denied the allegations, calling them inaccurate and defending its compliance practices.
(Source：Readwrite)