TLDR
- Sportradar is facing a class action lawsuit after its stock fell over 22% in one day following reports linking it to illegal gambling operators.
- Muddy Waters and Callisto Research both published reports claiming 20–40% of Sportradar’s revenue may come from unlicensed betting markets.
- Sportradar’s share price dropped from $16.84 to $13.04 on April 22, 2026, after the reports were released.
- The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses the company and executives of securities fraud.
- Sportradar denies the allegations and says it has a four-level process to ensure it only works with licensed operators.
Sportradar Group is facing a securities fraud class action lawsuit after its stock plunged more than 22% in a single trading session. The case was filed following reports that accused the sports data company of ties to illegal gambling operators.
The lawsuit was announced by securities law firm Bleichmar Fonti & Auld LLP. It accuses Sportradar and its senior executives of misleading investors about the company’s business relationships.
The legal action stems from two research reports published on April 22, 2026. Both reports raised questions about how much of Sportradar’s revenue comes from unlicensed betting platforms.
Short Seller Reports Triggered the Stock Drop
Muddy Waters, a well-known short seller, published a report titled “Sportradar AG: Putting the BET into Aiding and Abetting.” The report claimed the company’s business model “depends on illegal operators to survive.”
Muddy Waters alleged that between 20% and 40% of Sportradar’s revenues may have come from unlicensed operators. The firm said it identified nearly 50 clients operating in illegal markets.
On the same day, Callisto Research released a separate investigation. Its report claimed that one-third of platforms linked to Sportradar were operating illegally.
Callisto estimated that exposure to unlicensed operators could account for 30–40% of the company’s revenue. The research firm also reported that three U.S. regulators had already opened reviews into Sportradar.
The stock reaction was swift. Sportradar shares fell from $16.84 on April 21 to $13.04 on April 22, a drop of $3.80 per share.
That single-day decline of 22.6% is what triggered the class action lawsuit now moving forward.
Sportradar Pushes Back on Allegations
Sportradar has rejected the claims made in both reports. The company says its operations are built on integrity and compliance.
During the period in question, the company stated it was “crucial” to “conduct business in a manner that upholds high standards of ethics and integrity.” Sportradar also pointed to a “four-level process” designed to ensure it only works with licensed operators.
The company is known worldwide for collecting and distributing real-time sports data. Its clients include betting firms, sports leagues, and media outlets.
Sportradar continues to highlight its partnerships with major leagues including the NBA, MLB, NHL, and PGA Tour. The company argues its reputation is built on compliance and transparency.
Despite these assurances, investors say they were misled. The lawsuit claims the company failed to disclose the risks posed by its alleged ties to illegal betting markets.
The case was filed in the U.S. District Court for the Southern District of New York. It is captioned Smale v. Sportradar Group AG, No. 26-cv-4112.
The lawsuit alleges securities fraud under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. These sections deal with fraud and the liability of company officers.
Shareholders who held Sportradar Class A ordinary shares during the relevant period have until July 17, 2026, to seek appointment as lead plaintiff in the case.
