Riskified Ltd. Securities Fraud Class Action

Riskified investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than July 1, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.

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”).

Case Background:
On July 29, 2021, Riskified conducted its IPO, selling 20.125 million Class A ordinary shares at $21 per share, and generating over $422 million in gross proceeds.  Included in these sales are those of Defendant Assaf Feldman, Riskified’s co-founder, Chief Technology Officer and a director at the time of the IPO, who sold 200,000 shares and generated $4.2 million in gross proceeds for himself. 

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.

Finally, on February 23, 2022, Riskified issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2021.  Among other things, the release disclosed that Riskified's revenue growth and Gross Merchandise Value growth had continued to decelerate during the quarter to just 22% and 23%, respectively, year-over-year. Additionally, Riskified's gross profit growth remained muted, at just 10.7% year-over-year. During the earnings call the same day, Defendant Dotcheva stated that the year-over-year decline in gross profit margin was purportedly "driven primarily by [Riskified's] expansion into new industries and regions, increase of the tickets in travel industry as a percentage of total billings as well as the onboarding of new merchants.”

At the time of the filing of the complaint, Riskified Class A shares traded below $6.00 per share, more than 70% below the IPO price.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

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 info@ktmc.com.  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.