Grabar Law Office Investigates Claims on Behalf of Long-Term Shareholders of WEBTOON Entertainment Inc. (WBTN) As Securities Fraud Class Action Survives Motion to Dismiss

Philadelphia, Pennsylvania--(Newsfile Corp. - December 2, 2025) - If you purchased WEBTOON Entertainment Inc. (NASDAQ: WBTN) shares on, or shortly after, the Company's June 27, 2024 IPO, you can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. Please visit https://grabarlaw.com/the-latest/webtoon-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.

WHY? On November 14, 2025, the United States District Court for the Central District of California denied Defendants' attempt to dismiss the securities fraud class action complaint against WEBTOON Entertainment Inc. (NASDAQ: WBTN).

In allowing the class action to proceed, the court determined that Plaintiff adequately alleged that WEBTOON misled investors about the condition of one of its most critical performance metrics-Monthly Active Users ("MAU")-at the time of its IPO. The Complaint plausibly alleged that WEBTOON publicly characterized MAU levels as "stable," "durable," "consistent," "rebounding," and positioned for growth, while internally the company allegedly tracked MAUs daily, weekly, and monthly and knew that MAU levels in Korea and the Rest of World were declining sharply leading up to the IPO. The Court found it plausible that WEBTOON's statements created a misleading impression of stability and positive momentum when WEBTOON allegedly knew MAUs were deteriorating and that the delay of a promised AI recommendation tool had already contributed to weakening user metrics. These allegations sufficed to plead the falsity, scienter, and duty-to-disclose elements needed for the Section 10(b)/Rule 10b-5 claim concerning MAUs.

The Court also held that Plaintiff plausibly alleged that WEBTOON's risk disclosures and omission-based statements were misleading. According to the Complaint, WEBTOON warned only that MAU declines and foreign currency fluctuations "could" occur, while those risks had already materialized before the IPO and were allegedly known to management. The court found that the Complaint sufficiently alleged that Defendants spoke about these metrics and trends while withholding contradictory, known adverse information.

WHAT YOU CAN DO NOW: If you purchased WEBTOON (NASDAQ: WBTN) shares on or shortly after the June 27, 2024 IPO, you are encouraged to visit https://grabarlaw.com/the-latest/webtoon-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085. You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. #WBTN #WEBTOON $WBTN

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