Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against WEBTOON Entertainment Inc. (WBTN)
NEW YORK, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired 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”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that 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 Complaint 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 Complaint also 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%.
Investors who purchased or otherwise acquired shares of WEBTOON should contact the Firm prior to the November 4, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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