Webtoon Entertainment Inc.

Allegations that Webtoon's IPO registration statement contained materially false and misleading statements and omissions about the company's growth and revenue trends, causing losses for investors.

Webtoon Entertainment Inc., certain individual defendants and the underwriters of its IPO agreed to pay $10 million to settle a class action lawsuit alleging the IPO registration statement contained materially false and misleading statements and omissions about the company's growth and revenue trends. The settlement includes all persons and entities who purchased or otherwise acquired Webtoon Entertainment Inc. common stock pursuant or traceable to the registration statement issued in connection with its June 27, 2024, IPO and suffered damages as a result. The estimated average recovery is about $0.45 per eligible share before deductions for attorneys' fees and expenses, taxes and administration costs. Class members whose payment would be less than $10 will not receive a payout. The claim deadline is December 14, 2026.

• All persons and entities who purchased or otherwise acquired Webtoon Entertainment Inc. common stock pursuant or traceable to the registration statement issued in connection with...