HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Riskified Ltd. (RSKD) Investors with Significant Losses to...

SAN FRANCISCO , May 09, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Riskified Ltd. RSKD investors with significant losses to submit your losses now.

Class Period: July 25, 2024 - May 2, 2024

Lead Plaintiff Deadline: July 1, 2024

Visit: www.hbsslaw.com/investor-fraud/RSKD

Contact An Attorney Now: [email protected]

844-916-0895

Riskified Ltd. 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.