The lawsuit represents investors who acquired Sportradar Class A ordinary shares between November 7, 2024, and April 21, 2026. This legal action follows investigative reports from Muddy Waters Research and Callisto Research, which accused the firm of knowingly facilitating illegal gambling operations. Muddy Waters alleged that these illicit sources account for 20% to 40% of Sportradar's total revenue, a claim supported by interviews with former employees and analysis of the company's website code.

Callisto Research echoed these findings, reporting that over 270 platforms—representing a significant portion of Sportradar’s client base—operate without proper licensing in prohibited markets. The market reaction to these revelations was immediate, erasing more than $800 million in market capitalization. Reed Kathrein, the Hagens Berman partner leading the investigation, stated that the firm is examining evidence that Sportradar concealed an illegal business strategy from its shareholders. Investors have until July 17, 2026, to apply as lead plaintiffs in the case.