Sportradar Group AG (SRAD) Securities Class Action Filed Amid Activist Short Seller Accusations of Illegal Business Model and $800 Million Market Cap Wipeout - HBSS

SAN FRANCISCO, May 21, 2026 /PRNewswire/ -- Sportradar Group (NASDAQ: SRAD) faces a securities class action lawsuit, which seeks to represent investors who purchased or otherwise acquired Sportradar Class A ordinary shares between November 7, 2024 and April 21, 2026.

The lawsuit comes in the wake of the massive 22% collapse in the company shares on April 22, 2026, triggered by reports published by Muddy Waters Research and Callisto Research that accused the company of misleading investors about the legality of its business model and revenue sources.

Hagens Berman is investigating the pending claims alleging Sportradar's pre-April 22 disclosures violated the federal securities laws. The firm encourages Sportradar investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist the investigation to contact its attorneys.

Class Period: Nov. 7, 2024 – Apr. 21, 2026
Lead Plaintiff Deadline: July 17, 2026
Visit: www.hbsslaw.com/investor-fraud/srad
Contact the Firm Now: [email protected]
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Sportradar Group AG (SRAD) Securities Class Action:

The lawsuit alleges that Sportradar misrepresented and failed to disclose that the company intentionally worked with black-market gambling operators to increase its revenues, despite its assurances of strict legal and regulatory compliance and claims that ethics and integrity were crucial to the company's operations.

Investors' expectations about Sportradar's business practices, including purported KYC and Code guardrails, were dashed on April 22, 2026. That day, two activist short seller firms published highly critical reports on Sportradar's business practices, each contradicting the company's prior statements.

Muddy Waters Research conducted an undercover investigation, analyzed Sportradar's website code, and interviewed 15 current and former company employees to reach its conclusion that "SRAD has actively aided and abetted illegal gambling across the world's black and grey markets – not as an accident or an oversight, but as a business strategy." The firm "estimate[d] that illegal operators today deliver approximately 20-40% of total revenues[]" to Sportradar. Muddy Waters said it "identified nearly 50 companies as current or recent SRAD clients and collaborators who are operating in illegal markets."

For its part, Callisto examined hundreds of gambling platforms and reported that it found evidence that "over 270 individual platforms (more than a third of the 800 Sportradar claims to serve) are using Sportradar's products or services, or explicitly claiming to do so, while operating illegally in regulated or prohibited gambling markets." Callisto also said "[m]any of these operators have no license whatsoever[]" and "a senior former employee we spoke to estimated the exposure to unlicensed operators could be as high as 30-40% of Sportradar's revenue."

The market swiftly reacted, wiping out over $800 million of Sportradar's market capitalization in a single day.

"We're investigating the pending claims that, unbeknownst to investors, Sportradar's business practices were, in contrast to its claims, illegal, and whether the company may have recorded illegally obtained revenues," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the claims in the pending suit.

If you invested in Sportradar and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now.

If you'd like more information and answers to frequently asked questions about the Sportradar case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Sportradar should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP