The legal action, spearheaded by Hagens Berman, centers on accusations that Sportradar systematically ignored its own regulatory compliance guardrails. While the company publicly emphasized integrity and ethical operations, activist firms Muddy Waters Research and Callisto Research allege a different reality: that Sportradar knowingly facilitated illegal gambling as a core business strategy. Muddy Waters’ investigation, which included interviews with 15 former employees, estimated that between 20% and 40% of Sportradar’s total revenue stems from illegal operators.

Callisto Research corroborated these findings by identifying over 270 platforms using Sportradar’s services that operate without licenses in prohibited markets. This revelation wiped out $800 million in market capitalization in a single trading session. Reed Kathrein, a partner at Hagens Berman, stated the firm is now investigating whether Sportradar improperly recorded revenues derived from these illicit channels. Investors who suffered losses during the class period have until July 17, 2026, to file as lead plaintiffs.