Webtoon $10 Million Securities Class Action Settlement

Webtoon $10 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired Webtoon Entertainment Inc. common stock pursuant or traceable to the registration statement for its June 27, 2024, initial public offering may be eligible to claim a cash payment from a class action settlement .

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.

Who can file a claim?

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.

Additional details

• Both individuals and entities can be class members.
• The beneficial owner, not the record owner, must sign the claim form.
• Joint owners must each sign the claim form.
• Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
• Each separate legal entity must submit a separate claim.
• Participants in Webtoon employee benefit plans should not include plan purchases on an individual claim form; plan trustees may submit claims for those shares.

How much is the Webtoon securities payout?

The total settlement fund is $10,050,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of eligible shares purchased or acquired
• The timing and price of each purchase and sale
• The total recognized claims of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average recovery is about $0.45 per eligible share before deductions for attorneys' fees and expenses, taxes and administration costs.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate a recognized loss for each share class members bought in the IPO or on the open market through Sept. 5, 2024, using the court-approved plan of allocation:
• The purchase price used in each formula cannot exceed $21 per share.
• For shares sold from June 27, 2024, through Sept. 5, 2024, the recognized loss is the purchase price minus the sale price.
• For shares sold from Sept. 6, 2024, through June 30, 2026, the recognized loss is the purchase price minus the greater of the sale price or $12.27, the closing price on Sept. 5, 2024.
• For shares held as of the close of trading on June 30, 2026, the recognized loss is the purchase price minus $12.27.
• The settlement administrator will set any recognized loss that calculates to a negative number to zero.
• Each claimant's payment equals their recognized claim divided by the total recognized claims of all claimants times the net fund.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a Webtoon securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Dec. 14, 2026.

Settlement administrator's mailing address: Webtoon Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301135, Los Angeles, CA 90030-1135

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide holdings and transaction information, including:

• Number of shares held as of June 27, 2024
• Trade dates for purchases and sales from June 27, 2024, through June 30, 2026