Sportradar Faces Class Action Lawsuit After Short Seller Allegations

Hagens Berman Sobol Shapiro LLP is leading the investigation into whether Sportradar violated federal securities laws between November 7, 2024, and April 21, 2026. The legal challenge stems from explosive reports by Muddy Waters Research and Callisto Research, which accused the data provider of intentionally facilitating black-market betting as a core business strategy.

Muddy Waters alleged that illegal operators contribute between 20% and 40% of the company's total revenue, citing interviews with 15 current and former employees. Callisto Research corroborated these concerns, claiming that over 270 platforms—more than a third of Sportradar’s reported client base—operate without proper licenses in regulated markets. The market response was immediate, resulting in an $800 million evaporation of market capitalization in a single trading day.

Reed Kathrein, the Hagens Berman partner overseeing the case, noted that the firm is scrutinizing whether Sportradar knowingly recorded illegally obtained revenue. Investors who suffered substantial losses during the class period have until July 17, 2026, to meet the lead plaintiff deadline. The firm is also calling on whistleblowers with non-public information to assist in the investigation, potentially leveraging SEC whistleblower programs for original evidence.