SAN DIEGO & BEIJING--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that another purchaser of Wanda Sports Group Co. Ltd. (NASDAQ: WSG) has sued the Company for alleged violations of the Securities Act of 1933 pursuant to its July 2019 initial public offering ("IPO"). Wanda Sports Group operates as a sports events, media, and marketing platform worldwide.
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Wanda Sports Group, Inc. (WSG) Accused of Misleading Investors in IPO
Wanda Sports completed its IPO on July 29, 2019, offering 23.8 million American Depositary Shares ("ADSs") at $8.00 per ADS and raising more than $190 million in net proceeds. In Wanda Sports' Registration Statement, the Company touted increased revenue for the years ended December 31, 2017 and 2018 and for its first quarter 2019. Despite its positive statements, Wanda failed to disclose the lack of major sporting events for its Digital, Production, Sports Solutions ("DPSS") and Spectator Sports segments for its second quarter, which ended before its IPO, would negatively impact the Company's revenue. This impact was revealed on September 6, 2019, when Wanda Sports' CEO resigned and the Company reported poor financial results for second quarter of 2019, including a 70% year-over-year decrease in revenue from its DPSS segment and a 6% decrease year-over-year in its Spectator Sports segment. Wanda Sports Group's ADSs currently trade at around $3.00, representing a 62% decline from its IPO price.
Wanda Sports Group Co. Ltd. (WSG) Shareholders Have Legal Options
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