RISKIFIED DEADLINE ALERT Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against Riskified Ltd. and Encourages Investors to Contact the Firm
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Riskified Ltd. (“Riskified” or the “Company”) (NYSE: RSKD) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired Riskified securities pursuant to the Company’s July 28, 2021 IPO. Investors have until July 1, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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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 business – 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.