Key Takeaways
The law firm Bleichmar Fonti & Auld LLP has launched an investigation into Sportradar Group AG (NASDAQ:SRAD) for potential securities fraud, following a 22.6 percent drop in the company’s stock on April 22, 2026.
The investigation stems from reports by two investigative research firms, Muddy Waters and Callisto Research, that accuse the sports data company of generating a substantial portion of its revenue from illegal gambling operations. According to a release from the law firm, the reports challenge Sportradar’s previous statements that integrity is “at the heart of what we do.”
Sportradar shares fell $3.80 per share, from $16.84 on April 21 to $13.04 on April 22. The drop came after Muddy Waters published a report titled “Sportradar AG: Putting the BET into Aiding and Abetting,” which alleged the company’s business model “depends on illegal operators to survive.” The report estimated that illegal operators contribute 20 to 40 percent of Sportradar’s total revenue.
A separate report from Callisto Research, titled “Sportradar Group AG: the ‘integrity’ giant threatening its own existence,” claimed that as much as one-third of the platforms Sportradar serves were operating illegally. The report also revealed that three U.S. gambling regulators have commenced reviews into the company.
The investigation by BFA Law puts the sports technology company’s market conduct and internal controls under scrutiny, creating potential liability from the class-action lawsuit. The allegations of deriving significant revenue from black and grey markets directly contradict the company's public image and statements, and could lead to further regulatory action.
This article is for informational purposes only and does not constitute investment advice.
