Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Webtoon To Contact Him Directly To Discuss Their Options
If you suffered losses in Webtoon pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with Webtoon’s initial public offering conducted on or about June 27, 2024 (the "IPO" or "Offering") and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against WEBTOON Entertainment Inc. (“Webtoon” or the “Company”) (NASDAQ: WBTN) and reminds investors of the November 4, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that the Company experienced a deceleration in advertising revenue growth; (2) that the Company experienced a deceleration in IP adaptations revenue; (3) that the Company experienced exposure to weaker foreign currencies which offset revenue growth; (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On June 27, 2024, Webtoon conducted its initial public offering (“IPO”), selling approximately 16.3 million shares at $21 per share.
On August 8, 2024, Webtoon released its second quarter 2024 financial results, revealing revenue of $321 million, significantly below the analyst estimate of $340.8 million. The Company also reported a quarterly net loss of $76.6 million, stating that the loss was “primarily driven by one-time IPO-related costs and stock-based compensation expenses.”
On this news, Webtoon’s stock price fell $7.88, or 38.1%, to close at $12.75 per share on August 8, 2024, thereby injuring investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Webtoon’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the WEBTOON Entertainment class action, go to www.faruqilaw.com/WBTN or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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