Key Takeaways:
Hagens Berman Sobol Shapiro LLP is investigating claims that Sportradar Group AG worked with black-market gambling operators to boost revenue, a securities class action lawsuit alleges.
"Sportradar intentionally worked with black-market gambling operators to increase its revenues, despite its assurances of strict legal and regulatory compliance," the complaint filed in the US District Court for the Southern District of New York states.
The lawsuit covers investors who purchased Sportradar Class A ordinary shares between Nov. 7, 2024 and April 21, 2026. Lead plaintiff applications must be filed by July 17, 2026. The case is Smale v. Sportradar Group AG, Case No. 26-cv-4112.
Sportradar, which provides sports data and analytics to betting operators, listed on the Nasdaq in 2021 through a SPAC merger that valued the company at $2.4 billion. The allegations stem from short seller reports that exposed the company's ties to unregulated gambling operators, according to the lawsuit.
The complaint charges that Sportradar's Know-Your-Customer and compliance processes were not as strong as executives had claimed, and that statements about the company's business and operations lacked a reasonable basis. Multiple law firms — including Rosen Law Firm and Kahn Swick & Foti — have also issued investor alerts about the July 17 deadline.
The allegations, if proven, could expose Sportradar to significant financial penalties and regulatory scrutiny that may affect its ability to operate in regulated markets. Investors will watch for any company response ahead of the lead plaintiff deadline and for potential earnings impact disclosures in Sportradar's next quarterly filing.
This article is for informational purposes only and does not constitute investment advice.
