Sportradar Group AG (SRAD) Faces Investor Scrutiny Amid Muddy Waters, Callisto Accusations of Illegal Business Model; Shares Fall 22% – Hagens Berman

SAN FRANCISCO - Investors in Sportradar Group AG (NASDAQ: SRAD) saw the price of their shares crater 22% on April 22, 2026. The collapse was triggered by reports published by Muddy Waters Research and Callisto Research that each accused the company of misleading investors about the legality of its business model.

The developments have prompted national shareholder rights firm Hagens Berman to open an investigation into whether Sportradar’s disclosures before April 22 may have violated federal securities laws. 

The firm encourages Sportradar investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist the investigation to contact its attorneys.

Visit: www.hbsslaw.com/investor-fraud/srad

Contact the Firm Now: [email protected], 844-916-0895

Sportradar Group AG (SRAD) Investigation:

The investigation is focused on the propriety of Sportradar’s statements about working only within the legal gambling markets.

As recently as early November 2025, Sportradar’s management assured investors that, as to its data not showing up in markets it should not be ending up in, the company is “only working with licensed operators, and we have contracts which are enabling those operators only to work in the territory where they are licensed in.” The company also touted its 4-level know your customer (“KYC”) framework designed to monitor illegal gambling market activity and verify clients to ensure integrity in sports betting data services. 

These assurances came into question on April 22, 2026, when two activist short seller firms published highly critical reports on Sportradar’s business practices.

Muddy Waters Research conducted an undercover investigation, analyzed Sportradar’s website code, and interviewed 15 current and former company employees to reach its conclusion that “SRAD has actively aided and abetted illegal gambling across the world’s black and grey markets – not as an accident or an oversight, but as a business strategy.” The firm “estimate[d] that illegal operators today deliver approximately 20-40% of total revenues[]” to Sportradar. Muddy Waters said it “identified nearly 50 companies as current or recent SRAD clients and collaborators who are operating in illegal markets.”

For its part, Callisto examined hundreds of gambling platforms and reported that it found evidence that “over 270 individual platforms (more than a third of the 800 Sportradar claims to serve) are using Sportradar’s products or services, or explicitly claiming to do so, while operating illegally in regulated or prohibited gambling markets.” Callisto also said “[m]any of these operators have no license whatsoever[]” and “a senior former employee we spoke to estimated the exposure to unlicensed operators could be as high as 30-40% of Sportradar’s revenue.”

The market swiftly reacted, wiping out over $800 million of Sportradar’s market capitalization in a single day.

“Given the huge market for- and growth within- online betting, and the need for effective guardrails to assure legality of such conduct, we’re investigating whether, if Muddy Waters’ and Callisto’s conclusions are accurate, Sportradar may have misled investors about the legality of its business practices,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

If you invested in Sportradar and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now.

If you’d like more information and answers to frequently asked questions about the firm’s Sportradar investigation, read more »

Whistleblowers: Persons with non-public information regarding Sportradar should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

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About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.