PHILADELPHIA, May 20, 2022 /PRNewswire/ -- Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities of Riskified Ltd. ("Riskified" or the "Company") (NYSE: RSKD) on or traceable to the Company's July 2021 initial public offering ("IPO") (the "Class Period").
If you purchased Riskified securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at email@example.com or (215) 875-3015, or Michael Dell'Angelo at firstname.lastname@example.org or (215) 875-3080. You can also visit: https://investigations.bergermontague.com/riskified-ltd/
Whistleblowers: Anyone with non-public information regarding Riskified is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC 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 Class A ordinary shares at $21 per share, generating more than $422 million in proceeds.
According to the complaint, on September 9, 2021, during a conference call to discuss Riskified's Q2 2021 financial results, CFO Aglika Dotcheva disclosed that Riskified tended "to experience higher chargebacks when we enter a new industry."
On November 16, 2021, in connection with the Company's Q3 2021 financials, Defendants revealed that, among other negative developments, Riskified's revenue growth had declined to 26% year-over-year, its Gross Merchandise Value ("GMV") growth had declined to 28% year-over-year, and gross profits had increased only 10% year-over-year. Defendants also disclosed that Riskified's cost of revenue had jumped to $28.3 million during Q3, primarily as a result of a sharp increase in chargeback expenses. CFO Dotcheva blamed Riskified's growing merchant base as a primary cause of increased chargebacks.
Finally, on February 23, 2022, in announcing Q4 and full-year 2021 results, Defendants disclosed that Riskified's revenue growth and GMV growth had continued to decelerate, and Riskified's cost of revenue had continued to climb. CFO Dotcheva stated that the year-over-year decline in gross profit margin experienced "was 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 per share – more than 70% below the IPO price.
Berger Montague, with 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 over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Michael Dell'Angelo, Executive Shareholder
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