RADNOR, Pa., May 22, 2022 (GLOBE NEWSWIRE) — The law firm Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is advising investors that a securities class action lawsuit has been filed in the United States Court of District of the United States for the Southern District of New York v Riskified Ltd. (“Riskified”) (:RSKD). The suit accuses Riskified of violations of federal securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and outlook. Due to Riskified’s materially misleading statements and omissions to the public, Riskified investors have suffered significant losses.
CLICK HERE To SUBMIT YOUR RISK LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE INTO 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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PRINCIPAL APPLICANT DEADLINE: JULY 1, 2022
COURSE PERIOD: FROM JULY 29, 2021 TO MAY 2, 2022
CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or toll free (844) 887-9500 or by email at [email protected]
Kessler Topaz is one of the world’s foremost advocates for protecting the public from corporate fraud and other wrongdoing. Our securities fraud litigants are consistently individually recognized as leaders in the field and our firm is both feared and respected within the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the categories of shareholders we represent.
ALLEGED MISCONDUCT BY RISKIFIED
On July 29, 2021, Riskified completed its IPO, selling 20.125 million shares of Class A common stock at $21 per share and raising gross proceeds of over $422 million. These sales include those of the accused Assaf Feldman, co-founder of Riskified, chief technology officer and director at the time of the IPO, which sold 200,000 shares and raised gross proceeds of $4.2 million. 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 Chief Financial Officer, Defendant Aglika Dotcheva, stated that Riskified tends to “incur chargebacks higher when we enter a new industry.
Then, on November 16, 2021, Riskified announced its results for the third quarter ended September 30, 2021. The results revealed significant declines in many year-over-year financial metrics, including gross profit margins which had fallen to only 46% in the quarter and gross profit fell to $24.3 million. Additionally, Riskified’s cost of revenue had jumped to $28.3 million in Q3 2021, primarily due to a sharp increase in chargeback spending. On the earnings call, Defendant Dotcheva blamed Riskified’s growing merchant base as the primary cause of the rise in chargebacks.
Finally, on February 23, 2022, Riskified issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2021. Among other things, the release disclosed that Riskified’s revenue growth and growth in gross merchandise value continued to slow during the quarter to just 22% and 23%, respectively, year over year. Additionally, Riskified’s gross profit growth remained subdued at just 10.7% year-over-year. During the earnings call on the same day, defendant Dotcheva said the year-over-year decline in gross profit margin was allegedly “primarily due to [Riskified’s] expansion into new industries and regions, growth in travel industry tickets as a percentage of total billings, and new merchant onboarding.
At the time of the complaint, the risky Class A shares were trading below $6.00 per share, more than 70% below the IPO price.
WHAT CAN I DO?
Risky investors can, no later than July 1, 2022 seek to be named as the lead class representative plaintiff through Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absentee class member. Kessler Topaz Meltzer & Check, LLP encourages risky investors who have suffered significant losses to contact the company directly for more information.
CLICK HERE TO REGISTER FOR THE CASE
WHO CAN BE A PRINCIPAL APPLICANT?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the greatest financial interest and who are also adequate and typical of the proposed category of investors. The lead plaintiff chooses an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead or class attorneys. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP is filing class actions in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, corporate and fiduciary misconduct and negligence. 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/0f5d5449-7bbc-4f53-8212-c1c111a523d7