SAN DIEGO, June 27, 2022 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that it filed a class action lawsuit seeking to represent purchasers of Riskified Ltd. (NYSE: RSKD) Class A ordinary shares in or traceable to Riskified’s July 2021 initial public offering (the “IPO”) and that investors with substantial losses have until this Friday, July 1, 2022 to seek appointment as lead plaintiff. The Riskified class action lawsuit – captioned Thomas v. Riskified Ltd., No. 22-cv-03545 (S.D.N.Y.) – charges Riskified, certain of its top executives and directors, and the IPO’s underwriters with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff, please provide your information here:
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Riskified class action lawsuit must be filed with the court no later than July 1, 2022.
CASE ALLEGATIONS: Riskified operates a risk management platform that utilizes machine learning to protect its merchant-clients from fraud. On July 1, 2021, Riskified filed with the U.S. Securities and Exchange Commission (“SEC”) a registration statement on Form F-1 for the IPO, which, after several amendments, was declared effective on July 28, 2021 (the “Registration Statement”). The Registration Statement was used to sell to the investing public 20.125 million Riskified Class A ordinary shares at $21 per share, generating over $422 million in gross proceeds.
The Riskified class action lawsuit alleges that the IPO’s Registration Statement made inaccurate statements of material fact because they failed to disclose the following adverse facts that existed at the time of the IPO: (i) as Riskified expanded its user base, the quality of Riskified’s machine learning platform had deteriorated (rather than improved as represented in the Registration Statement), because of, among other things, inaccuracies in the algorithms associated with onboarding new merchants and entering new geographies and industries; (ii) Riskified had expanded its customer base into industries with relatively high rates of fraud – including partnerships with cryptocurrency and remittance businesses – in which Riskified had limited experience and that this expansion has negatively impacted the effectiveness of Riskified’s machine learning platform; (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; and (iv) thus, 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, and were materially false and misleading, and lacked a factual basis.
At the time of the filing of this complaint, Riskified Class A shares traded below $6 per share, more than 70% below the IPO price.
You can view a copy of the complaint by visiting the following link:
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Riskified Class A ordinary shares in or traceable to the IPO to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
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Robbins Geller Rudman & Dowd LLP
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J.C. Sanchez, 800-449-4900