WEBTOON Entertainment Inc.
Case Overview
40 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 11/04/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: WEBTOON Entertainment Inc. |
Court: | Court: Central District of California |
Case Number: | Case Number: 2:24cv07553 |
Class Period: | Class Period: 06/24/2024 - 09/05/2024 |
Ticker: | Ticker: WBTN |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired WEBTOON Entertainment Inc. (“Webtoon” or the “Company”) (NASDAQ: WBTN) securities during the period from June 24, 2024 to September 5, 2024 inclusive (“the Class Period”). Investors have until November 4, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 8, 2024, just six weeks after completing its initial public offering (“IPO”), Webtoon announced its second-quarter 2024 revenue of $321 million, coming in significantly below the $340.8 million forecast made by analysts. Webtoon also reported a quarterly net loss of $76.6 million, or 70 cents, also below the market forecasts of 72 cents for the quarter, which ended just days after the IPO. The company stated that its quarterly loss was driven by one-time IPO costs and stock-based compensation expenses, in addition to significant exposure to weaker foreign currencies, including the South Korean won and the Japanese yen, reducing its revenue. On this news, the price of Webtoon shares declined by $7.88 per share, or approximately 38.1%, from $20.63 per share on August 8, 2024, to close at $12.75 on August 9, 2024.
The lawsuit alleges that Webtoon failed to disclose to investors that the Company experienced: (1) a deceleration in advertising revenue growth; (2) a deceleration in IP adaptations revenue; and (3) exposure to weaker foreign currencies which offset revenue growth.
On August 8, 2024, just six weeks after completing its initial public offering (“IPO”), Webtoon announced its second-quarter 2024 revenue of $321 million, coming in significantly below the $340.8 million forecast made by analysts. Webtoon also reported a quarterly net loss of $76.6 million, or 70 cents, also below the market forecasts of 72 cents for the quarter, which ended just days after the IPO. The company stated that its quarterly loss was driven by one-time IPO costs and stock-based compensation expenses, in addition to significant exposure to weaker foreign currencies, including the South Korean won and the Japanese yen, reducing its revenue. On this news, the price of Webtoon shares declined by $7.88 per share, or approximately 38.1%, from $20.63 per share on August 8, 2024, to close at $12.75 on August 9, 2024.
The lawsuit alleges that Webtoon failed to disclose to investors that the Company experienced: (1) a deceleration in advertising revenue growth; (2) a deceleration in IP adaptations revenue; and (3) exposure to weaker foreign currencies which offset revenue growth.