The action charges Riskified with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the companys business, operations, and prospects.
RADNOR, Pa., May 14, 2022 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against Riskified Ltd. (“Riskified”) (NYSE: RSKD). The action charges Riskified with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Riskified’s materially misleading statements and omissions to the public, Riskified investors have suffered significant losses.
CLICK HERE TO SUBMIT YOUR RISKIFIED LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/riskified-ltd?utm_campaign=rskd&mktm=r&utm_source=PR&utm_medium=link
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LEAD PLAINTIFF DEADLINE: JULY 1, 2022
CLASS PERIOD: JULY 29, 2021 through MAY 2, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at email@example.com
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
RISKIFIED’S ALLEGED MISCONDUCT
On July 29, 2021, Riskified conducted its IPO, selling 20.125 million Class A ordinary shares at $21 per share, and generating over $422 million in gross proceeds. Included in these sales are those of Defendant Assaf Feldman, Riskified’s co-founder, Chief Technology Officer and a director at the time of the IPO, who sold 200,000 shares and generated $4.2 million in gross proceeds for himself.
On September 9, 2021, during a conference call to discuss Riskified's financial results for the second quarter ended June 30, 2021, Riskified's CFO, Defendant Aglika Dotcheva, stated that Riskified tended "to experience higher chargebacks when we enter a new industry."
Then, on November 16, 2021, Riskified announced its third quarter ended September 30, 2021 results. The results revealed significant declines in many year-over-year financial metrics including gross profit margins which had plummeted to just 46% during the quarter and gross profit fell to $24.3 million. Further, Riskified's cost of revenue had jumped to $28.3 million in the third quarter of 2021, primarily as a result of a sharp increase in chargeback expenses. During the earnings call, Defendant Dotcheva blamed Riskified's growing merchant base as a primary cause of increased chargebacks.
Finally, on February 23, 2022, Riskified issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2021. Among other things, the release disclosed that Riskified's revenue growth and Gross Merchandise Value growth had continued to decelerate during the quarter to just 22% and 23%, respectively, year-over-year. Additionally, Riskified's gross profit growth remained muted, at just 10.7% year-over-year. During the earnings call the same day, Defendant Dotcheva stated that the year-over-year decline in gross profit margin was purportedly "driven primarily by [Riskified's] expansion into new industries and regions, increase of the tickets in travel industry as a percentage of total billings as well as the onboarding of new merchants.”
At the time of the filing of the complaint, Riskified Class A shares traded below $6.00 per share, more than 70% below the IPO price.
WHAT CAN I DO?
Riskified investors may, no later than July 1, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Riskified investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a49024f5-eccb-4937-bbc3-f7b96af6772b