| COMPANY |
WEBTOON Entertainment Inc. |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
24-cv-06765 |
| JUDGE |
The Hon. Consuelo B. Marshall |
| CLASS PERIOD |
Pursuant and/or traceable to June 2024 IPO |
| SECURITY TYPE |
Common Stock |
LEAD PLAINTIFF DEADLINE IS NOVEMBER 4, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
On August 8, 2024, after the market closed, WEBTOON announced its second quarter 2024 financial results, and revealed company revenue of $321 million, a revenue growth of 0.1%, which had been “offset by the Company’s significant exposure to weaker foreign currencies.” The company further revealed that advertising revenue declined 3.6%, and IP Adaptions revenue declined 3.7%, resulting in a quarterly loss of $76.6 million. On this news, the price of WEBTOON common stock declined $7.88 per share, or approximately 38.2%, from a close of $20.63 per share on August 8, 2024, to close at $12.75 per share on August 9, 2024.
The complaint alleges that, in the prospectus and registration statements issued in connection with the IPO (the “IPO Documents”), Defendants made materially false and/or misleading statements and/or omissions regarding the company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements regarding, and/or failed to disclose, that: (1) the company experienced a deceleration in advertising revenue growth and IP Adaptations revenue; (2) the company experienced exposure to weaker foreign currencies which offset revenue growth; and (3) as a result, the IPO Documents were materially false and/or misleading and failed to state information required to be stated therein.
What is a Lead Plaintiff?
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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or 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.