Sportradar Group AG Class Action Lawsuit – SRAD

Introduction

A securities class action lawsuit has been filed against Sportradar Group AG (NASDAQ: SRAD), its Founder and Chief Executive Officer Carsten Koerl, and its Chief Financial Officer Craig Felenstein on behalf of investors who purchased Sportradar Class A ordinary shares between November 7, 2024, and April 21, 2026. The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements about Sportradar's legal and regulatory compliance practices, its Know-Your-Customer ("KYC") processes, and its commitment to ethical business conduct. According to the complaint, defendants concealed that Sportradar intentionally worked with black-market gambling operators across multiple countries as a core business strategy to drive revenues. When two independent research firms published reports on April 22, 2026, revealing Sportradar's extensive ties to illegal gambling operations worldwide, SRAD shares plummeted $3.80 per share, or approximately 22.6%, to close at $13.04.

Company Profile

Sportradar Group AG is a Switzerland-based provider of data platforms and services to the global sports betting industry, including data collection and processing, risk management, and fraud monitoring. The Company partners with prominent sports organizations such as the NBA, MLB, the NHL, the PGA Tour, and FIFA to supply pre-match and live data and odds to betting operators including Bet365, Caesars, DraftKings, Entain, FanDuel, and William Hill. Sportradar also distributes sports audiovisual content to media outlets and betting operators globally.

Class Period

November 7, 2024 – April 21, 2026, inclusive.

Investors who purchased or acquired Sportradar Group AG (SRAD) securities during the Class Period may be entitled to seek recovery under the federal securities laws.

Allegations

The complaint alleges that Sportradar repeatedly assured investors throughout the Class Period that the Company operated with the highest standards of ethics and integrity and maintained rigorous compliance processes to ensure it only worked with legally licensed gambling operators. Beginning with the Company's third quarter 2024 financial results filed on November 7, 2024, and continuing through its 2025 Annual Report filed on March 27, 2026, Sportradar's SEC filings, signed and certified by defendants Koerl and Felenstein, represented that the Company had "obtained necessary licenses, authorizations, findings of suitability, registrations, permits and approvals necessary for [its] current operations" and made "good faith efforts to comply with all local requirements." The Company's Code of Business Conduct and Ethics, published on its website throughout the Class Period, further emphasized that Sportradar "place[d] integrity, transparency and professionalism at the heart of all [it] do[es]."

According to the complaint, defendants actively reinforced these representations through public appearances and investor communications. On April 1, 2025, defendant Koerl appeared on CNBC's "MAD MONEY" and likened Sportradar to "the SEC or the FBI" for the gambling industry, highlighting its purported ability to police fraudulent and illicit activity. During the Company's third quarter 2025 earnings call on November 5, 2025, when a Citizens Bank analyst directly questioned Sportradar's exposure to gray and black markets, Koerl described a "four-level process" to confirm the Company "only work[s] with licensed operators," including a "global compliance team" conducting "intensive KYC with every operator" and an "internal audit" process to detect unauthorized use of Sportradar's content. Koerl characterized violations as occurring in only "a handful of cases every year" and emphasized that the Company was "monitoring this very closely."

The complaint alleges these statements were materially false and misleading because Sportradar was, in fact, intentionally working with black-market gambling operators to increase its revenues. Rather than maintaining the robust KYC and compliance infrastructure defendants described, the complaint alleges the Company employed what one investigative report later characterized as a "check-the-box" KYC review paired with a deliberate "see nothing, know nothing" approach to illegal markets. Plaintiffs allege defendants knew or recklessly disregarded that Sportradar's compliance processes were not as robust as publicly claimed and that the Company's business practices directly contradicted its stated commitment to ethics, integrity, and legal compliance.

The Truth Emerges

On April 22, 2026, two independent market research firms, Muddy Waters Research and Callisto Research, separately published investigative reports that revealed Sportradar's extensive ties to illegal gambling operations worldwide. Muddy Waters reported that its investigators had posed as sportsbook operators at the International Casinos Exhibition, a major global gaming convention, where a Sportradar sales executive allegedly "bragged that [Sportradar] 'serves everyone'" and walked the investigators through product offerings for illegal markets in Vietnam, Thailand, Indonesia, and China. The executive purportedly listed major business-to-business clients in Asia that were known illegal operators and offered to facilitate introductions, including to the Yabo Group, a notorious illegal betting operation in China associated with human trafficking, modern slavery, kidnapping, and torture at Cambodian customer service centers. Muddy Waters further identified connections between Sportradar and illegal operators in Russia, Turkey, and multiple Asian markets, concluding that Sportradar "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."

Callisto Research's separate investigation examined hundreds of gambling platforms and found evidence suggesting that over 270 individual platforms, representing more than a third of the approximately 800 operators Sportradar claimed to serve, were using Sportradar's products or services while operating illegally in regulated or prohibited gambling markets. Former Sportradar employees told Callisto that one of the Company's top ten clients, 1xBet, was "likely to be the world's largest illegal gambling operator by revenue." Callisto also reported that it had shared its findings with multiple regulators in North America and Europe, three of which had already commenced reviews of Sportradar. These revelations directly contradicted defendant Koerl's November 2025 assurances of a rigorous four-level compliance process and his characterization of compliance violations as merely a "handful of cases every year."

Market Reaction

Following the publication of the Muddy Waters and Callisto reports on April 22, 2026, SRAD shares suffered a severe single-day decline. The stock fell $3.80 per share, or approximately 22.6%, from a closing price of $16.84 on April 21, 2026, to close at $13.04 on April 22, 2026. The complaint alleges that the decline was caused by the revelations in the investigative reports, which disclosed Sportradar's ties to illegal gambling operations and noted that multiple regulators had reportedly already commenced reviews of the Company based on those findings.

Next Steps

●       Lead Plaintiff Deadline: July 17, 2026

●       After the lead-plaintiff deadline, the Court will consider any motions for appointment of lead plaintiff and lead counsel.

●       The Court may then consider a motion for class certification.

●       The case may later involve a motion to dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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