RISKIFIED LTD. Company News: Berger Montague Investigating Securities Fraud Allegations Against Riskified Ltd. (RSKD); The deadline for the lead applicant is July 1, 2022

Philadelphia, Pa.–(Newsfile Corp. – May 11, 2022) – Shepherd Montague is investigating allegations of securities fraud on behalf of investors who purchased the securities of Riskified Ltd. (“Riskified” or the “Company”) RSKD on or traceable to the July 2021 initial public offering (“IPO”) of the Company (the “Class Period”).

If you purchased Risky Securities during the Class Period, wish to discuss the Berger Montague investigation, or have any questions regarding your rights or interests, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875- 3015, or Michael Dell’Angelo at [email protected] or (215) 875-3080.

Whistleblowers: Anyone with nonpublic information about Riskified is encouraged to confidentially participate in Berger Montague’s investigation or take advantage of the SEC’s whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.

On July 28, 2021, Riskified’s registration statement for an IPO was declared effective and was used to sell 20 million shares of Class A common stock at $21 per share, raising over $422 million in products.

According to the complaint, on September 9, 2021, during a conference call to discuss Riskified’s second quarter 2021 financial results, Chief Financial Officer Aglika Dotcheva revealed that Riskified tended to “incur higher chargebacks when we enter a new industry.

On November 16, 2021, as part of the company’s third quarter 2021 financial statements, defendants disclosed that, among other negative developments, Riskified’s revenue growth declined to 26% year over year. Elsewhere, its gross merchandise value (“GMV”) growth had declined to 28% year-over-year, and gross profits had only increased 10% year-over-year. Defendants also disclosed that Riskified’s cost of revenue jumped to $28.3 million during the third quarter, primarily due to a sharp increase in chargeback expenses. CFO Dotcheva blamed Riskified’s growing merchant base as the main cause of the increase in chargebacks.

Finally, on February 23, 2022, during the fourth quarter and full year 2021 earnings announcement, defendants disclosed that Riskified’s revenue growth and GMV growth continued to slow, and the cost of Riskified’s revenue had continued to rise. Chief Financial Officer Dotcheva said the year-over-year decline in gross profit margin “was 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 at less than $6 a share – more than 70% below the IPO price.

Shepherd Montaguewith offices in Philadelphia, Minneapolis, Washington, D.C. and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for more than five decades and acts as lead counsel before the courts. across the United States.

contacts

Andrew Abramowitz, Senior Counsel
Shepherd Montague
(215) 875-3015
[email protected]

Michael Dell’Angelo, executive shareholder
Shepherd Montague
(215) 875-3080
[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/123623

Karen J. Nelson