PHILADELPHIA, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against WEBTOON Entertainment Inc. (“WEBTOON” or the “Company”) (NASDAQ: WBTN) on behalf of purchasers of WEBTOON securities between June 24, 2024 through September 5, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired WEBTOON securities during the Class Period may, no later than NOVEMBER 4, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net or (215) 875-3048, or CLICK HERE.
WEBTOON, headquartered in Los Angeles, is an entertainment company that operates a storytelling platform worldwide. In the Company’s IPO on or about June 27, 2024, WEBTOON sold more than 16.3 million shares of common stock at $21.00 per share for net proceeds of approx. $308.5 million.
According to the complaint, the IPO registration statement misled investors regarding the fact that: (1) WEBTOON had experienced a deceleration in advertising revenue growth; (2) WEBTOON had experienced a deceleration in IP adaptations revenue; and (3) WEBTOON had experienced exposure to weaker foreign currencies, which offset revenue growth.
Investors learned the true state of WEBTOON’s operations on August 8, 2024, when the Company announced its financial results for second quarter 2024. Among other things, WEBTOON reported revenue growth of only 0.1%, and further revealed that advertising revenue had declined 3.6%, IP adaptations revenue had declined 3.7%, and the Company’s quarterly net loss was $76.6 million. WEBTOON also disclosed that revenue growth had been “offset by the Company’s significant exposure to weaker foreign currencies.”
On this news, WEBTOON’s stock fell by $7.88 per share, more than 38%, to close at $12.75 per share on August 9, 2024. By the commencement of the class action lawsuit, WEBTOON stock had traded as low as $12.03 per share, a more than 42% decline from the $21.00 per share IPO price.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
(215) 875-3048
phamner@bm.net
