Archived Investigations
WEBTOON Entertainment Inc. (NasdaqGS: WBTN)
Webtoon and certain of its executives and others are charged with failing to disclose material information in its IPO Registration Statement and Prospectus (collectively, the “Offering Documents”), violating federal securities laws.
On August 8, 2024, the Company announced its financial results for 2Q 2024, disclosing total revenue growth of only 0.1% and that advertising revenue had declined 3.6%, that IP adaptations revenue had declined 3.7%, and that its quarterly net loss was $76.6 million. Further, the Company also disclosed a quarterly net loss of $76.6 million, and that its revenue and revenue growth had been “offset by the Company’s significant exposure to weaker foreign currencies.”
On this news, shares of Webtoon fell by more than 38%, and by the commencement of the lawsuit, the Company’s stock has traded as low as $12.45 per share, a more than 40% decline from the $21.00 per share IPO price.
The case is Brookman v. WEBTOON Entertainment Inc., et al., No. 24-cv-07553.