WEBTOON Entertainment Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On June 27, 2024, Webtoon went public, selling 16,371,549 shares at $21.00 each.
On August 8, 2024, after the market closed, Webtoon announced its financial results for the second quarter of 2024, which ended shortly after the IPO. The company reported revenue of $321 million, showing only a 0.1% increase. Advertising revenue dropped by 3.6%, and revenue from IP adaptations fell by 3.7%. Webtoon explained that the weak performance was due to the company’s significant exposure to declining foreign currencies. They also reported a net loss of $76.6 million, or 70 cents per share.
Following this announcement, Webtoon’s stock price fell by $7.88, or 38.2%, closing at $12.75 on August 9, 2024, with unusually high trading volume. By the time the class action was filed, Webtoon’s stock had fallen to as low as $12.45 per share, more than 40% below the IPO price of $21.00.
The class action lawsuit alleges that the IPO Registration Statement contained false or misleading information and failed to disclose important negative facts about the company. Specifically, it claims that investors were not informed about: (1) the slowdown in advertising revenue growth; (2) the slowdown in IP adaptations revenue; (3) the impact of weaker foreign currencies on revenue growth; and (4) the misleading nature of the positive statements made about the company’s business and prospects.
