NEW ORLEANS, Sept. 25, 2024 (GLOBE NEWSWIRE) — ClaimsFiler, a FREE shareholder information service, reminds investors that they have until November 4, 2024 to file lead plaintiff applications in a securities class action lawsuit against WEBTOON Entertainment Inc. (“Webtoon” or the “Company”) (NasdaqGS: WBTN), if they purchased the Company’s shares pursuant and/or traceable to the Company’s registration statement issued in connection with its June 2024 initial public offering (“IPO”). This action is pending in the United States District Court for the Central District of California.
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Webtoon investors should visit us at https://claimsfiler.com/cases/nasdaq-wbtn/ or call toll-free (844) 367-9658. Lawyers at Kahn Swick & Foti, LLC are available to discuss your legal options.
About the Lawsuit
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.
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ClaimsFiler has a single mission: to serve as the information source to help retail investors recover their share of billions of dollars from securities class action settlements. At ClaimsFiler.com, investors can: (1) register for free to gain access to information and settlement websites for various securities class action cases so they can timely submit their own claims; (2) upload their portfolio transactional data to be notified about relevant securities cases in which they may have a financial interest; and (3) submit inquiries to the Kahn Swick & Foti, LLC law firm for free case evaluations.
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