Published
October 3, 2026
Investors who bought WEBTOON Entertainment common stock in or traceable to its June 27, 2024 initial public offering may qualify to claim a pro rata share of the $10.05 million WEBTOON securities class action settlement, estimated at about $0.45 a share before fees. Claims close December 14, 2026, and the settlement hearing is set for December 1, 2026.
Current Status
Claims are open. A Claim Form must be submitted online or postmarked by December 14, 2026. The U.S. District Court for the Central District of California has ordered notice to the settlement class, and Judge Consuelo B. Marshall will hold the settlement hearing on December 1, 2026, at 10:00 a.m. The settlement has not received final approval, and no payment date had been announced as of October 3, 2026.Free settlement alerts
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Status
Claims Open
Claim Deadline
December 14, 2026
Online or postmarked · exclusions and objections due November 10
Estimated Payout
About $0.45 a Share
Average per eligible share before fees of about $0.12 · pro rata · $10 minimum
Proof Required
Yes — Brokerage Records
Broker confirmations or statements for all WEBTOON transactions and holdings
What Changed Recently?
WEBTOON Entertainment Inc. and the other defendants agreed to pay $10.05 million to settle Brookman v. WEBTOON Entertainment Inc., a federal securities class action over the company’s June 27, 2024 initial public offering. The deal was reached at a June 30, 2026 mediation and signed in a stipulation dated August 7, 2026. The court-ordered summary notice was published September 28, 2026, and Verita Global is administering claims.The lead plaintiff alleges that the registration statement and prospectus for the IPO contained materially false and misleading statements and omissions, in violation of Sections 11 and 15 of the Securities Act of 1933, and that WEBTOON’s stock price fell substantially after the offering. In December 2025 the court granted in part and denied in part the defendants’ motion to dismiss. The defendants deny any liability or wrongdoing, and the settlement is not an admission of fault.
Who Qualifies?
The settlement class covers all persons and entities that purchased or otherwise acquired WEBTOON common stock pursuant or traceable to the registration statement issued for the June 27, 2024 IPO. Under the plan of allocation, that includes shares bought in the IPO and shares bought on the open market from June 27 through September 5, 2024.Excluded are the defendants, WEBTOON’s officers and directors, their immediate families and legal representatives, entities the defendants control, and anyone who opts out. Investment vehicles in which a defendant has an interest are not excluded.
How Much Can You Get?
The notice estimates an average recovery of about $0.45 per eligible share before attorneys’ fees, expenses, taxes and administration costs, assuming every eligible investor files. Fees and expenses at the maximum requested amounts would cost about $0.12 per eligible share. Actual payments depend on purchase and sale prices and dates and on the total value of valid claims, so some claimants will receive more and some less.The plan of allocation follows the Section 11 damages formula, with the purchase price capped at $21.00 a share. For shares sold from June 27 through September 5, 2024, the loss is the purchase price minus the sale price. For shares sold from September 6, 2024 through June 30, 2026, the loss is the purchase price minus the greater of the sale price or $12.27, WEBTOON’s closing price on September 5, 2024, the day the first complaint was filed. For shares still held at the end of June 30, 2026, the loss is the purchase price minus $12.27.
The net fund is divided pro rata by each claimant’s share of total recognized losses. No distribution is made to a claimant whose share would be less than $10, and distributions begin only after claims are processed, the court grants final approval and any appeals are resolved.
What Proof or Notice ID Is Required?
No notice ID is required, but the claim rests on brokerage records. The Claim Form asks for every WEBTOON common stock purchase, acquisition, sale and holding in the requested periods and requires supporting documents for each, such as broker confirmation slips, monthly account statements or an authorized statement from the broker. The form explains that the parties and the administrator have no independent record of individual investments and that missing documentation may lead to rejection.What Is the Deadline?
Claim Forms must be submitted online or postmarked by December 14, 2026. The summary notice gives a date only, with no time of day or time zone.Requests for exclusion must be received by November 10, 2026. Objections to the settlement, the plan of allocation or the fee request must be filed with the court and delivered to counsel so that they are received by November 10, 2026.
How Do You Take Action?
The online claim form, the detailed notice and the stipulation are posted on the official WEBTOON Securities Settlement website. Filing involves listing each WEBTOON transaction and holding, uploading the brokerage records and signing the release. Investors whose brokerage account has closed can request historical statements from the broker.Other open IPO and stock-drop settlements are collected on OCA’s securities class actions hub.
What Happens Next?
Judge Marshall will hold the settlement hearing on December 1, 2026, at 10:00 a.m. in Courtroom 8D of the Felicitas and Gonzalo Mendez U.S. Courthouse in Los Angeles, or remotely at the court’s discretion, to decide whether to approve the settlement, the plan of allocation and the fee request. Any change to the hearing date or format will be posted on the settlement website. No payment date had been announced as of October 3, 2026.Sources and Verification
- WEBTOON Securities Settlement — official settlement website
- Court-ordered Summary Notice of Pendency of Class Action and Proposed Settlement, released by Robbins Geller Rudman & Dowd LLP on Business Wire, September 28, 2026
- Court docket, including the Stipulation and Agreement of Settlement (ECF No. 104), Brookman v. WEBTOON Entertainment Inc., No. 2:24-cv-07553-CBM-RAO, C.D. Cal.
Questions
Do WEBTOON shares bought after the IPO count?
Shares bought on the open market from June 27 through September 5, 2024 can count if they are traceable to the IPO registration statement. The plan of allocation treats purchases in that window the same way as IPO purchases, with the purchase price capped at $21.00 a share.
Are WEBTOON options covered?
Option contracts are not eligible. WEBTOON common stock is the only security covered. When shares were bought or sold by exercising an option, the exercise date and exercise price are used as the purchase or sale date and price.
How much will the lawyers ask for?
Lead counsel Robbins Geller Rudman & Dowd LLP plans to request attorneys’ fees of up to 25% of the settlement fund and litigation expenses of up to $200,000 plus interest. If the court awards the maximum, the notice estimates the cost at about $0.12 per eligible share.
Is there a minimum payment?
No distribution is made to a claimant whose calculated share is less than $10. That money is added to the payments for claimants whose share is $10 or more.
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Settlement Amount
$10,050,000
Case Title
Brookman v. WEBTOON Entertainment Inc.
Case Number
2:24-cv-07553-CBM-RAO
Court
U.S. District Court, Central District of California
Final Approval Hearing
December 1, 2026 at 10:00 AM
Courtroom 8D, Felicitas and Gonzalo Mendez U.S. Courthouse, Los Angeles, or remotely
Administrator
Verita Global
Official Website
WEBTOON Securities Settlement
