NEW YORK, May 04, 2022 (GLOBE NEWSWIRE) — Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, advises investors that a securities class action lawsuit has been filed against Riskified Ltd. (“Riskified” or the “Company”) (NYSE: RSKD) and certain other defendants, alleging violations of federal securities laws. If you purchased Riskified shares in or traceable to the Company’s July 28, 2021 initial public offering (“IPO”), you are encouraged to contact Jonathan Zimmerman for additional information at (888) 398-9312, or at [email protected]. The lead plaintiff deadline is July 1, 2022.
Riskified is an eCommerce risk management platform that uses machine learning to identify fraud.
The lawsuit alleges that the Company’s IPO’s Registration Statement, made inaccurate statements of material fact because it failed to disclose adverse facts that existed at the time of the IPO, including that: (i) as Riskified expanded its user base, the quality of Riskified’s machine learning platform deteriorated (rather than improved as represented in the Registration Statement); (ii) Riskified had expanded its customer base into industries with relatively high rates of fraud – including partnerships with cryptocurrency and remittance business – in which Riskified had limited experience and that this expansion negatively impacted the effectiveness of Riskified’s machine learning platform; and (iii) as a result, Riskified was suffering from materially higher chargebacks and cost of revenue and depressed gross profits and gross profit margins during its third fiscal quarter of 2021. As a result, according to the complaint, the Registration Statement’s representations regarding Riskified’s historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of Riskified prior to and at the time of the IPO.
As this information began to reach the market, the Company’s stock declined. At the time of the filing of the complaint, Riskified’s shares traded below $6 per share, or more than 70% below the IPO price.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is July 1, 2022. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased Riskified shares in or traceable to the Company’s July 2021 IPO, or if you have questions about this notice or your legal rights, please contact attorney Jonathan Zimmerman at (888) 398-9312, or at [email protected].
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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