HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Riskified Ltd. (RSKD) Investors with Significant Losses to Contact Firm’s Attorneys Before July 1st Application Deadline in IPO-Related Securities Class Action

SAN FRANCISCO, June 28, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Riskified Ltd. (NYSE: RSKD) investors with significant losses to submit your losses now.

Class Period: July 25, 2021 - May 2, 2022
Lead Plaintiff Deadline: July 1, 2022
Visit: www.hbsslaw.com/investor-fraud/RSKD
Contact An Attorney Now: [email protected]
                                             844-916-0895

Riskified Ltd. (NYSE: RSKD) Securities Class Action:

Riskified claimed that, as it grows its online merchant customer base, its machine learning platform gets more accurate and the company’s risk of having to compensate its customers when the platform erroneously approves a fraudulent transaction that later is forcibly reversed (“chargeback expense”) is minimized. Riskified’s representations allowed the company to go public, raising over $422 million in gross proceeds through the IPO.

The complaint alleges Riskified didn’t disclose the following in its IPO documents: (1) as Riskified expanded its user base the quality of its platform deteriorated due to inaccuracies in algorithms associated with onboarding new merchants and expanding into new geographies and industries; (2) Riskified expanded into industries (crypto and remittance businesses) with relatively high rates of fraud and, as a result, the effectiveness of its platform was negatively impacted; and, (3) as a result, Riskified suffered from materially higher chargeback expenses that negatively impacted its Q3 2021 financial performance.  

During Riskified’s Q2 2021 earnings call on Sept. 9, 2021, Defendants revealed the company tended “to experience higher chargebacks when we enter a new industry.” During Riskified’s Q3 2021 earnings call on Nov. 16, 2021, Riskified reported that its cost of revenues skyrocketed 44% year over year, blaming the sharp increase in chargeback expenses and growing customer base.

At the time of the filing of the complaint, Riskified shares traded below $6 per share, more than 70% below the IPO price.

“We’re focused on investors’ losses and proving Riskified’s IPO documents omitted adverse facts regarding its risk management platform,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Riskified and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Riskified should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:[email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Contact:
Reed Kathrein, 844-916-0895