2022-06-02 | NYSE: RSKD | Press release

RADNORPa. , June 2, 2022 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) advises investors that a securities class action lawsuit has been filed against Riskified Ltd. (“Riskified”) (NYSE: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 RISKED 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: JULY 29, 2021 through MAY 2, 2022

CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:

James Maro, Esq. (484) 270-1453 or 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, 2021Riskified completed its IPO, selling 20.125 million shares of Class A common stock to $21 per share, and generating more than $422 million in raw product. Included in these sales are those of the defendant Assaf Feldmanco-founder of Riskified, Chief Technology Officer and director at the time of the IPO, which sold 200,000 shares and generated $4.2 million in raw product for itself.

On September 9, 2021on a conference call to discuss Riskified’s financial results for the second quarter ended June 30, 2021chief financial officer of Riskified, defendant Aglika Dochevasaid Riskified tends “to experience higher chargebacks when we enter a new industry.”

Then, on November 16, 2021Riskified has announced that its third quarter has ended September 30, 2021 results. The results revealed significant declines in many year-over-year financial metrics, including gross profit margins which had fallen to just 46% in the quarter and gross profit fell to $24.3 million. Additionally, Riskified’s cost of revenue had soared to $28.3 million in the third quarter of 2021, mainly due to a sharp increase in chargeback expenses. 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, 2022Riskified has issued a press release announcing its financial results for the fourth quarter and the year ended December 31, 2021. Among other things, the release revealed that Riskified’s revenue growth and gross merchandise value growth continued to slow in the quarter to just 22% and 23%, respectively, year-over-year. other. 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, not later than July 1, 2022 seek to be appointed as the lead plaintiff representing the class by Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages risky investors who have suffered significant losses to contact the company directly for more information.

CLICK HERETO 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 category of investors proposed. 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 pursues class action lawsuits 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 on Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP

James Maro, Jr., Esq.

280 King of Prussia Road

Radnor, Pennsylvania 19087

(484) 270-1453

[email protected]

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SOURCE Kessler Topaz Meltzer & Check, LLP