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.
Muddy Waters claims that earlier this year, it had “investigators” pose as operators of a startup sportsbook in Barcelona, and that Sportsradar’s sales team offered to connect them with a Chinese illegal gambling operator. The firm alleges the goal was to help the non-existent company expand into markets like Vietnam, Thailand, Indonesia, and China, where online gambling is illegal.
Sportradar shares plunged as much as 30% following the report. It is currently trading at $13.03 per share, down roughly 59% from its all-time high closing price of $31.79 per share on Aug. 26, 2025.
The proposed class action lawsuit includes anyone who acquired Sportsradar stock between Nov. 7, 2024, and April 21, 2026. During that time period, the suit says, the company “touted the robustness” of its due diligence, know-your-customer process, and “overall legal and regulatory compliance.”
“However, when the short-seller reports came out, investors learned the truth about the Company’s intentional non-compliance with applicable laws and regulations,” the complaint says. That truth, per the complaint, is that Sportradar “intentionally utilized a network of black-market gambling partners to drive a material portion of its revenues.”
The two-count lawsuit, which alleges violations of the Securities Exchange Act of 1934, does not seek a specific amount of damages. It demands a trial, during which damages will be determined.
The day the short-seller reports came out, a Sportradar spokesperson said “we unequivocally challenge” the assertions made.
“Sportradar works exclusively with licensed operators, follows strict global compliance, and due diligence standards, and we stand by our independently audited financial statements, risk disclosures, and information provided to investors and regulators,” the statement said. “We conduct our business with the highest ethical standards consistent with company policies, laws and regulations.”
More Fallout
For the first quarter of 2026, Sportradar posted revenue of $406 million, representing 11% growth year-over-year. It reported a loss of $7 million after having posted a profit of $28 million in Q1 2025. Its first-quarter results came out about a week after the short-seller reports.
Results missed analyst expectations, and Jefferies downgraded the company from a “buy” to a “hold” rating and reduced its price target from $30 per share to $14.
This does not represent the first lawsuit lodged against Sportradar this year. In March, it was sued by online sports-betting software provider Altenar. There, two suits were filed, one in New Jersey federal court and another in the London High Court. Both claim Sportradar has a monopoly over live data and betting odds.
Representatives for the plaintiffs did not immediately respond to a request for comment.
