Sportradar is facing more fallout from the short-seller reports that raised concerns about ties to unregulated gambling operators overseas, with a proposed class action lawsuit taking aim at the company for allegedly failing to inform investors about those relationships.
The lawsuit, filed May 18 in New York federal court on behalf of named plaintiff James Anthony Smale, names Switzerland-based Sportradar, CEO Carsten Koerl, and CFO Craig Felenstein as defendants. It claims investors were misled about risks to the company’s performance.
Sportradar is an integrity monitor that compiles global betting and prediction-market data to spot abnormal line movement and wagering patterns. Its presence is ubiquitous in sports, gambling, and prediction markets, although it works behind the scenes with leagues including the NBA, WNBA, NHL, MLB, PGA Tour, and FIFA, as well as law enforcement when necessary.
Stock Hits and ‘Black Market’
The company’s stock has taken a significant hit since accusations on April 22 from two short-sellers—Muddy Waters and Callisto Research—who claim the company secretly has exposure to hundreds of illegal gambling operators, including those with direct links to match-fixing.
