Webtoon Class Action Lawsuit: 8 Frequently Asked Questions

INTRODUCTION TO THE WEBTOON CLASs ACTION LAWSUIT

Contact us today for a free case evaluation in the WEBTOON class action lawsuit

The WEBTOON class action lawsuit seeks to represent purchasers or acquirers of WEBTOON Entertainment Inc. (NASDAQ: WBTN) common stock pursuant and/or traceable to WEBTOON’s registration statement issued in connection with WEBTOON’s June 27, 2024 initial public offering (“IPO”).  Captioned Brookman v. WEBTOON Entertainment Inc., No. 24-cv-07553 (C.D. Cal.), the WEBTOON class action lawsuit charges WEBTOON and certain of WEBTOON’s top executives and directors, as well as certain underwriters of WEBTOON’s IPO, with violations of the Securities Act of 1933.

If you have suffered losses in WEBTOON stock and are interested in becoming the lead plaintiff in the WEBTOON class action lawsuit or have any inquiries regarding your rights as a shareholder, please reach out to WEBTOON Stock Loss Lawyer Timothy L. Miles at no cost. You can contact him by calling 855/846-6529, sending an e-mail to [email protected], or filling out a contact form below. Lead plaintiff motions for the WEBTOON class action lawsuit must be filed with the court no later than November 6, 2024.

Read on for answers to eight frequently asked questions from investors about the WEBTOON class action lawsuit.

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what are the allegations in the WEBTOON CLASS ACTION lawsuit?

WEBTOON is an entertainment company that operates a storytelling platform worldwide. The key allegations in the WEBTOON class action lawsuit can be summarized:
• IPO Details:

• Sold over 16.3 million shares of common stock
• Priced at $21.00 per share
• Net proceeds: Approximately $308.5 million

• CLASS ACTION ALLEGATIONS:
WEBTOON allegedly failed to disclose:

1. Deceleration in advertising revenue growth
2. Slowdown in IP adaptations revenue

• Exposure to weaker foreign currencies offsetting revenue growth​

Financial Results (Q2 2024):

• Total revenue: $321 million (0.1% growth)
• Advertising revenue: 3.6% decline
• IP adaptations revenue: 3.7% decline
• Net loss: $76.6 million

Stock Performance Post-IPO:

• 38% drop following Q2 2024 financial results announcement
• Stock traded as low as $12.45 per share
• Represents over 40% decline from IPO price

• WEBTOON cited "significant exposure to weaker foreign currencies" as a factor offsetting revenue    growth
• The lawsuit claims the IPO registration statement was materially false and misleading

when is THE LEAD PLAINTIFF DEADLINE IN THE CLASS ACTION against WEBTOON?

​​​Lead plaintiff motions for the WEBTOON class action lawsuit ​must be filed with the court no later than November 4, 2024.​ When a securities class action is filed such as the WEBTOON class action lawsuit:

1. The person who files the first complaint is required to publish a notice announcing the filing.
2. Anyone who wants to be lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published. 

what is THE LEAD PLAINTIFF PROCESS IN THE WEBTOON class action LAWSUIT?

Under the Private Securities Litigation Reform Act of 1995 (PSLRA):

• Any investor who purchased and suffered losses in WEBTOON stock may seek appointment as lead plaintiff in the WEBTOON class action lawsuit.
• A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. 
• A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.
• The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. 
• An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. 

what are THE BENEFITS OF SERVING AS A LEAD PLAINTIFF IN THE WEBTOON CLASS ACTION LAWSUIT?

1. Negotiating more competitive attorney fees and reducing litigation costs.​
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a  settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

what are THE RESPONSIBILITIES THE LEAD PLAINTIFF WILL HAVE IN THE WEBTOON CLASS ACTION LAWSUIT?

1. ​Selecting, monitoring, and overseeing Lead Counsel.​
2. Reviewing and commenting on court filings on behalf of the class.
3. Discussing litigation strategies with the Lead Counsel.
4. Attending depositions (if necessary) and giving a deposition.
5. Attending hearings (if necessary).
6. Participating in mediation and the trial (if necessary).
7. Provide input on any decision concerning the settlement of the securities class action.

what are the ELIGIBILITY CRITERIA FOR LEAD PLAINTIFF APPOINTMENT IN THE WEBTOON CLASS ACTION LAWSUIT?

To be eligible for appointment as the lead plaintiff in the WEBTOON class action lawsuit, an investor must meet the following criteria:

1. Securities Acquisition: The investor must have purchased or acquired WEBTOON common stock pursuant and/or traceable to WEBTOON’s registration statement issued in connection with WEBTOON’s June 27, 2024 IPO.
2. Financial Losses: The investor must have suffered financial losses as a direct result of the alleged securities fraud perpetrated by WEBTOON and its executives.
3. Typicality and Adequacy: The investor's legal claims must be typical of those asserted on behalf of the class, and they must demonstrate their ability to adequately represent the interests of the entire class through experience, resources, and the absence of conflicts of interest.

It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the WEBTOON class action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.

what are the LEGAL REQUIREMENTS FOR PREVAILING IN THE WEBTOON CLASS ACTION LAWSUIT?

​​To succeed in the WEBTOON class action lawsuit, the plaintiffs must establish the following elements:

1. Material Misrepresentation or Omission: The defendants made false or misleading statements or failed to disclose material facts about Agenus' business, operations, or financial condition.
2. Scienter: The defendants acted with the requisite state of mind, such as knowledge or reckless disregard for the truth, when making the alleged misrepresentations or omissions.
3. Connection to Securities Transaction: The alleged misrepresentations or omissions were made in connection with the purchase or sale of MongoDB securities.
4. Reliance: Investors relied on the defendants' misrepresentations or omissions when making their investment decisions.
5. Economic Loss: Investors suffered financial losses as a result of the alleged securities fraud.
6. Loss Causation: The defendants' misrepresentations or omissions caused the economic losses suffered by investors.

Establishing these elements is crucial for the plaintiffs to prevail in the WEBTOON class action lawsuit and recover damages on behalf of the class members.

what are the STAGES OF THE CLASS ACTION AGAINST Agenus?

1. Consolidation and Lead Plaintiff Appointment: Related cases are consolidated, and the court appoints the lead plaintiff(s) to represent the class.
2. Filing of Consolidated Complaint: The lead plaintiff files a consolidated complaint outlining the allegations against the defendants.
3. Motion to Dismiss: The defendants may file a motion to dismiss the complaint, which the court will consider and rule upon.
4. Class Certification: The court determines whether the case meets the criteria for class certification, allowing it to proceed as a class action.
5. Discovery: Both parties exchange relevant documents and information through the discovery process.
6. Settlement Negotiations and Mediation: The parties may engage in settlement negotiations or mediation to explore the possibility of resolving the case without a trial.
7. Summary Judgment Motions: The parties may file motions for summary judgment, seeking a resolution without a trial based on the undisputed facts.
8. Trial: If the case does not settle, it proceeds to trial, where a judge or jury will determine liability and damages.
9. Appeals: Either party may appeal the court's decisions, potentially extending the litigation timeline.

​The duration of a securities class action lawsuit can vary significantly depending on the complexity of the case and the parties' willingness to engage in settlement negotiations.

CONTACT WEBTOON STOCK LOSS LAWYER TODAY TIMOTHY L MILES TODAY ABOUT A WEBTOONCLASS ACTION LAWSUIT

​​If you suffered losses in WEBTOON stock, contact WEBTOON stock loss lawyer Timothy L. Miles today for a free case evaluation about a WEBTOON class action lawsuit. Call today and see what an WEBTOON stock loss lawyer could do for you if you suffered losses in WEBTOON ​stock. ​This will most likely be the only call you need to make. (855) 846–6529 or [email protected]. ​​​​

The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
Phone: (855) 846–6529
​​Email: [email protected]

WEBTOON stock loss lawyer Timothy L. Miles ​

Agenus stock loss lawyer Timothy L. Miles​ Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.
• Top 100 Civil Plaintiff Trial Lawyers by The National Trial Lawyers Association (2017-2022).
• Class Action:  Top 25 National Trial Lawyers by the National Trial Lawyers Association (2023)
• AV® Preeminent™ Attorney by Martindale-Hubbell® (2014-2022).
• AV® Preeminent™ Attorney – Judicial Edition (2017-2022).
• Top Ranked Lawyer by Martindale-Hubbell® and ALM  (2019-2022).
• Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022)
• Elite Lawyer of the South by Martindale-Hubbell® and ALM  (2019-2022).
• PRR AV Preeminent Rating on Lawyers.com by Martindale-Hubble® (2018-2022).
• America’s Most Honored Lawyers 2020 – Top 1% by Lawyers of Distinction (2020-2021).
• America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).
• Top 1% of Attorneys in America by Premier Lawyers of America (2019-2021).
• Nation’s Top One Persent by the National Association of Distinguished Counsel (2021).
• The Top-Rated Lawyer in Litigation™ for Ethical Standards and Legal Ability by Martindale-Hubble® (Feb. 2015).
• Distinguished Lawyer, Recognizing Excellence in Securities Law, Lawyers of Distinction (2019-2021)
• Lifetime Achievement Award by Premier Lawyers of America (2019-2021).
• Superb Rated Attorney, (10.0 out of 10), the Highest Rating Possible by Avvo.
• Avvo Top Rated Lawyer (Avvo 2017-2022).
• Avvo Client's Choice Award 2021 (Avvo 2021).
• Elite Lawyer 2021 by Elite Lawyer (2019-2021).
• America’s Most Honored Professionals – Top 1% (American Registry 2016-2022).
• Top Rated Lawyers in Tennessee (Lawyers of Distinction 2021-2022)

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
​​Phone:(855) 846-6529
​Email: [email protected]
www.masstortsheadquarters.com