RM LAW Announces Class Action Lawsuit Against WEBTOON Entertainment Inc.
BERWYN, Pa., Sept. 25, 2024 /PRNewswire/ -- RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased WEBTOON Entertainment Inc. ("WEBTOON" or the "Company") (NASDAQ: WBTN) common stock pursuant and/or traceable to WEBTOON's registration statement issued connection with WEBTOON's June 27, 2024 initial public offering ("IPO").
WEBTOON shareholders may, no later than November 4, 2024, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of WEBTOON and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
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.
If you are a member of the class, you may, no later than November 4, 2024, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at [email protected] or click here. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website by clicking here.
RM LAW, P.C. is a national shareholder litigation firm. RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
CONTACT: RM LAW, P.C.
Richard A. Maniskas, Esquire
1055 Westlakes Dr., Ste. 300
Berwyn, PA 19312
484-324-6800
844-291-9299
[email protected]
SOURCE RM LAW, P.C.
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