Riskified Ltd. Securities Fraud Class Action
Case Background:
A class action lawsuit has been filed on behalf of those who purchased or acquired Riskified Ltd. (“Riskified”) (NYSE: RSKD) Class A ordinary shares between July 29, 2021 and May 2, 2022, inclusive (the “Class Period”).
On September 9, 2021, during a conference call to discuss Riskified’s financial results for the second quarter ended June 30, 2021, Riskified’s CFO, Defendant Aglika Dotcheva, stated that Riskified tended “to experience higher chargebacks when we enter a new industry.”
Then, on November 16, 2021, Riskified announced its third quarter ended September 30, 2021 results. The results revealed significant declines in many year-over-year financial metrics including gross profit margins which had plummeted to just 46% during the quarter and gross profit fell to $24.3 million. Further, Riskified’s cost of revenue had jumped to $28.3 million in the third quarter of 2021, primarily as a result of a sharp increase in chargeback expenses. During the earnings call, Defendant Dotcheva blamed Riskified’s growing merchant base as a primary cause of increased chargebacks.
Current Status of Case:
On June 2, 2023, the Court issued an Order granting Defendants’ Motion to Dismiss the complaint. This action has concluded.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453 or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.
