WEBTOON Entertainment Inc. Class Action Lawsuit - WBTN
Case Summary
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The WEBTOON class action lawsuit seeks to represent purchasers or acquirers of WEBTOON Entertainment Inc. (NASDAQ: WBTN) common stock pursuant and/or traceable to WEBTOON’s registration statement issued in connection with WEBTOON’s June 27, 2024 initial public offering (“IPO”). Captioned Brookman v. WEBTOON Entertainment Inc., No. 24-cv-07553 (C.D. Cal.), the WEBTOON class action lawsuit charges WEBTOON and certain of WEBTOON’s top executives and directors, as well as certain underwriters of WEBTOON’s IPO, with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff of the WEBTOON class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the WEBTOON class action lawsuit must be filed with the court no later than November 4, 2024.
CASE ALLEGATIONS: WEBTOON is an entertainment company that operates a storytelling platform worldwide. In the IPO, WEBTOON sold more than 16.3 million shares of common stock at a price of $21.00 per share and WEBTOON received net proceeds of approximately $308.5 million.
The WEBTOON class action lawsuit alleges that the IPO’s registration statement was materially false and misleading and omitted to state that: (1) WEBTOON experienced a deceleration in advertising revenue growth; (2) WEBTOON experienced a deceleration in IP adaptations revenue; and (3) WEBTOON experienced exposure to weaker foreign currencies which offset revenue growth.
The WEBTOON class action lawsuit further alleges that on August 8, 2024, WEBTOON announced its financial results for second quarter 2024, reporting revenue of $321 million, which represented total revenue growth of only 0.1%, and further revealing that advertising revenue had declined 3.6%, that IP adaptations revenue had declined 3.7%, and that WEBTOON’s quarterly net loss was $76.6 million. The WEBTOON class action lawsuit further alleges that WEBTOON also disclosed that its revenue and revenue growth had been “offset by the Company’s significant exposure to weaker foreign currencies.” On this news, WEBTOON’s stock fell by more than 38%, the complaint alleges. By the commencement of the WEBTOON class action lawsuit, WEBTOON stock has traded as low as $12.45 per share, a more than 40% decline from the $21.00 per share IPO price, the complaint alleges.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired WEBTOON common stock pursuant and/or traceable to the IPO to seek appointment as lead plaintiff in the WEBTOON class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the WEBTOON class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the WEBTOON class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the WEBTOON class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.