The legal action, spearheaded by Hagens Berman, centers on accusations that Sportradar systematically ignored its own regulatory compliance guardrails. While the company publicly emphasized integrity and ethical operations, activist firms Muddy Waters Research and Callisto Research allege a different reality: that Sportradar knowingly facilitated illegal gambling as a core business strategy. Muddy Waters’ investigation, which included interviews with 15 former employees, estimated that between 20% and 40% of Sportradar’s total revenue stems from illegal operators.
Sportradar Faces Class Action After Short Seller Allegations
A 22% stock collapse on April 22, 2026, has triggered a securities class action against Sportradar Group, as investors allege the company masked its reliance on black-market gambling revenue. The lawsuit targets disclosures made between November 2024 and April 2026, following claims that the firm intentionally serviced illegal betting platforms.
Callisto Research corroborated these findings by identifying over 270 platforms using Sportradar’s services that operate without licenses in prohibited markets. This revelation wiped out $800 million in market capitalization in a single trading session. Reed Kathrein, a partner at Hagens Berman, stated the firm is now investigating whether Sportradar improperly recorded revenues derived from these illicit channels. Investors who suffered losses during the class period have until July 17, 2026, to file as lead plaintiffs.
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