Sportradar Hit With Class Action Lawsuit Over Alleged Ties to Illegal Gambling Operators

Sportradar, the sports data giant that powers betting feeds for the NBA, MLB, NHL, and PGA Tour, has been hit with a securities fraud class action lawsuit after its stock tanked on reports alleging it does business with illegal gambling operators.

The suit was filed May 18 in the U.S. District Court for the Southern District of New York by plaintiff James Anthony Smale, represented by Kessler Topaz Meltzer & Check. It names Sportradar, Founder and CEO Carsten Koerl, and CFO Craig Felenstein as defendants. The complaint alleges Sportradar "made materially false and/or misleading statements" about its business — specifically by misrepresenting or failing to disclose that it worked with black-market gambling operators and overstating how strong its compliance processes really were.

The class covers investors who purchased Sportradar Class A ordinary shares between November 7, 2024 and April 21, 2026.

Here's what set this off: on April 22, short sellers Callisto Research and Muddy Waters published reports alleging Sportradar had improper ties to illegal gambling operations. Sportradar's stock plunged 22% that day, dropping from $16.84 to $13.04. As of May 26, the stock sits at $12.99 — down 45% from the start of the year.

Sportradar has denied the allegations. The company said the short-seller reports contained "several factual inaccuracies" and that it "works exclusively with licensed operators." CEO Carsten Koerl followed up with an open letter to shareholders on LinkedIn calling the reports unfounded and defending the company's compliance processes. Sportradar declined to comment on the class action itself.

Who's eligible

If you bought Sportradar (NASDAQ: SRAD) Class A ordinary shares between November 7, 2024 and April 21, 2026 and lost money, you're part of the class.

How to file

This is still early — there's no settlement yet. Investors have until July 17, 2026 to ask the court to be appointed lead plaintiff. You don't have to be lead plaintiff to share in any future recovery, though. If a settlement happens down the line, eligible shareholders can file a claim then.

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