Sportradar Faces Securities Lawsuit Over Illegal Gambling Allegations

The lawsuit targets the period between November 7, 2024, and April 21, 2026, representing investors who suffered losses when the company's shares plummeted 22% on April 22, 2026. This sudden devaluation followed reports from activist short sellers Muddy Waters Research and Callisto Research, which challenged the integrity of Sportradar’s business model.

Muddy Waters alleged that Sportradar actively aided illegal gambling operations as a core strategy, estimating that between 20% and 40% of the firm's total revenue originated from unlicensed entities. Callisto Research supported these claims, reporting that over 270 platforms—more than a third of those Sportradar claims to serve—operate illegally in prohibited markets. Reed Kathrein, a partner at Hagens Berman, stated the firm is investigating whether Sportradar misled shareholders by recording illegally obtained revenue while publicly touting its commitment to rigorous KYC and compliance guardrails.

Investors who acquired Class A ordinary shares during the class period have until July 17, 2026, to serve as lead plaintiffs. The legal team is currently gathering evidence and encouraging those with non-public information to come forward, citing potential whistleblower rewards for original information provided to the SEC.