The investigation focuses on the period between November 7, 2024, and April 21, 2026. Allegations center on the company’s business model, which reportedly relied on revenue streams from illegal gambling platforms. These claims surfaced following investigative reports from Muddy Waters Research and Callisto Research, which accused Sportradar of systemic deception.

Muddy Waters alleged that Sportradar’s involvement with illicit markets was a deliberate strategy rather than an oversight. Through website code analysis and employee interviews, the firm estimated that illegal operators contribute between 20% and 40% of Sportradar's total revenue. Callisto Research corroborated these findings, identifying over 270 platforms using Sportradar services while operating without licenses in prohibited regions. The market reaction to these disclosures was immediate, erasing more than $800 million in market capitalization.

Reed Kathrein, the Hagens Berman partner heading the investigation, suggests the firm may have booked unlawful earnings while misleading shareholders about its commitment to integrity. The firm is currently seeking contact from investors who suffered financial losses during the class period, as well as whistleblowers with non-public information regarding the company's operations. The deadline for potential lead plaintiffs to come forward is July 17, 2026.