Webtoon Investors with Losses Over $50,000 Encouraged to Contact Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating potential legal claims against WEBTOON Entertainment Inc. (WBTN) following a substantial decline in its stock price. The firm is urging investors who experienced losses exceeding $50,000 in Webtoon due to the company’s recent financial performance to contact them directly to discuss their legal options.
The investigation stems from Webtoon’s second-quarter 2024 financial results released on August 8, 2024. These results revealed revenue of $321 million, significantly lower than the analyst estimate of $340.8 million. The company also reported a quarterly net loss of $76.6 million, attributing it to “one-time IPO-related costs and stock-based compensation expenses.”
Following this news, Webtoon’s stock price plummeted by $7.88, representing a 38.1% drop, closing at $12.75 per share on August 8, 2024. This sharp decline has potentially caused substantial financial losses for investors.
Faruqi & Faruqi, LLP is actively exploring whether Webtoon and its executives violated federal securities laws by failing to disclose material information related to the company’s financial performance. Specifically, the firm is investigating whether the company:
* Experienced a deceleration in advertising revenue growth.
* Experienced a deceleration in IP adaptations revenue.
* Faced exposure to weaker foreign currencies that offset revenue growth.
The firm is also examining whether the company’s positive statements about its business, operations, and prospects were misleading or lacked a reasonable basis.
Investors who purchased Webtoon stock between June 27, 2024, the date of the company’s initial public offering (IPO), and August 8, 2024, are encouraged to contact Faruqi & Faruqi, LLP to discuss their legal rights. They can reach out to partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Alternatively, investors can submit their transactions online through the firm’s website: [Click here to submit your transactions].
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP is a leading national securities law firm with offices in New York, Pennsylvania, California, and Georgia. The firm has a long history of representing investors in complex securities litigation cases and has recovered hundreds of millions of dollars for clients since its founding in 1995.
