TLDR Sportradar is facing a class action lawsuit after its stock fell over 22% in one day following reports linking it to illegal gambling operators. Muddy Waters and Callisto Research both published reports claiming 20–40% of Sportradar’s revenue may come from unlicensed betting markets. Sportradar’s share price dropped from $16.84 to $13.04 on April 22, 2026, after the reports were released. The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses the company and executives of securities fraud. Sportradar denies the allegations and says it has a four-level process to ensure it only works with licensed operators.
Sportradar Group is facing a securities fraud class action lawsuit after its stock plunged more than 22% in a single trading session. The case was filed following reports that accused the sports data company of ties to illegal gambling operators.
The lawsuit was announced by securities law firm Bleichmar Fonti & Auld LLP. It accuses Sportradar and its senior executives of misleading investors about the company’s business relationships.
The legal action stems from two research reports published on April 22, 2026. Both reports raised questions about how much of Sportradar’s revenue comes from unlicensed betting platforms.
Short Seller Reports Triggered the Stock Drop
Muddy Waters, a well-known short seller, published a report titled “Sportradar AG: Putting the BET into Aiding and Abetting.” The report claimed the company’s business model “depends on illegal operators to survive.”
Muddy Waters alleged that between 20% and 40% of Sportradar’s revenues may have come from unlicensed operators. The firm said it identified nearly 50 clients operating in illegal markets.
On the same day, Callisto Research released a separate investigation. Its report claimed that one-third of platforms linked to Sportradar were operating illegally.
Callisto estimated that exposure to unlicensed operators