NEWTOWN, Pa., Sept. 13, 2024 (GLOBE NEWSWIRE) -- Edelson Lechtzin LLP, a leading class action law firm, is investigating securities fraud claims on behalf of all investors of WEBTOON Entertainment, Inc. (NASDAQ: WBTN) common stock pursuant and/or traceable to the Company’s initial public offering conducting in June 2024 (the “IPO”). A copy of the Complaint can be found HERE.
Investors who purchased Webtoon stock may move the U.S. District Court for the Central District of California to appoint them as lead plaintiff, no later than November 4, 2024. Please contact Edelson Lechtzin LLP to discuss your investment losses at 844-696-7492, or by e-mail at elechtzin@edelson-law.com.
Background on WEBTOON Entertainment, Inc.
Webtoon is a South Korean digital comics platform that allows users to explore, create, and distribute a wide array of stories.
The Securities Fraud Claims
The Complaint alleges that the Webtoon IPO registration statement was materially false and misleading and omitted to state that: (i) the Company experienced a deceleration in advertising revenue growth; (ii) the Company experienced a deceleration in IP adaptions revenue; and (iii) the Company experienced exposure to weaker foreign currencies which offset revenue growth.
On August 8, 2024, after the markets closed, Webtoon announced its second-quarter 2024 financial results, reporting revenue of $321 million, with a marginal 0.1% growth rate. Advertising and IP Adaptations revenue declined by 3.6% and 3.7%, respectively. The Company attributed the decline to its exposure to weaker foreign currencies and reported a quarterly net loss of $76.6 million. On this news, the price of Webtoon’s stock fell $7.88 per share, or 38.2%, to close at $12.75 per share on August 9, 2024, on unusually heavy trading volume.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
