Wanda Sports Group Company Limited Class Action Lawsuit
- Company Name
- Wanda Sports Group Company Limited
- Stock Symbol
- District of Oregon
On November 18, 2019, the Wanda Sports Group Company Limited class action lawsuit was filed charging Wanda Sports, certain of its officers and directors, and the underwriters of the July 26, 2019 IPO with violations of the Securities Act of 1933. The Wanda Sports class action lawsuit was commenced in the District of Oregon on behalf of purchasers of Wanda Sports securities pursuant to the July 26, 2019 initial public offering (“IPO”) and is captioned Fu v. Wanda Sports Group Company Limited, et al., No. 3:19-cv-01852.
Wanda Sports operates a global sports events, media, and marketing platform. Wanda Sports owns contractual rights of global, regional, and national sports properties from which it seeks to generate revenue across the value chain, including events operation, media production and distribution, sponsorship and marketing, and digital solutions. Wanda Sports has three reporting segments: (1) Mass Participation; (2) Spectator Sports; and (3) Digital, Production, Sports Solutions (“DPSS”).
The Wanda Sports class action lawsuit alleges that the Registration Statement for the IPO was materially false and misleading and failed to disclose to investors that: (1) revenue for the second quarter of 2019 (“2Q19”) would be negatively impacted by the lack of major sporting events for the Spectator Sports and DPSS segments; (2) Wanda Sports had suffered a yearover-year decrease in revenue in 2Q19 and would suffer a yearover-year decrease in revenue for its fiscal year 2019, primarily related to lower reimbursement revenues in the DPSS segment and the lack of Spectator Sport segment offsets; and (3) as a result, defendants’ statements about Wanda Sports’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On September 9, 2019, Wanda Sports issued a press release reporting its 2Q19 financial results. Wanda Sports reported total revenue of €283.8 million (US$322.8 million), a decrease of 30% year over year primarily due to decreased revenue from the DPSS segment (€54.8 million ($62.3 million), down 70% year over year). Revenue in the Spectator Sports segment was €138.1 million ($157.1 million), down 6% year over year primarily due to the decline in revenue from Wanda Sports’ football portfolios. The press release included full year 2019 guidance, stating in part that, “[f]or 2019, we currently expect . . . [t]otal revenue to be in the range of €1,008 million to €1,070 million, or down 11% to 5% from 2018.” By the commencement of the Wanda Sports securities class action lawsuit, Wanda Sports’ stock was trading as low as $2.78 per share, a 65% decline from the $8.00 per share IPO price.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.