NEW YORK, Sept. 20, 2024 (GLOBE NEWSWIRE) -- 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.
[Click here to learn more about the class action]
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.
If you purchased or otherwise acquired Webtoon securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
