LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces an investigation of Riskified Ltd. (“Riskified” or the “Company”) (NYSE: RSKD) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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In July 2021, Riskified conducted its initial public offering (“IPO”), selling 20.125 million Class A shares at $21 per share.
On November 16, 2021, Riskified released its financial results for third quarter 2021, the period during which the IPO was conducted. The Company reported that revenue growth declined to 26% year-over-year, compared to 55% and 47% revenue growth in previous quarters. The Company’s gross profit margins had also declined while its cost of revenue increased to $28.3 million – 30% above the Company’s cost of revenue for the first and second quarters of 2021. The Company reassured investors that the results were “expected” and “definitely aligned” to expectations.
Then, on February 23, 2022, Riskified released its fourth quarter and full year 2021 financial results, reporting a continued decline in revenue growth and increase in cost of revenue. Additionally, the Company stated that its expected gross margin for 2022 would be only “at or above 51%.”
Following this news, Riskified Class A shares traded below $6 per share, more than 70% below the IPO price.
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If you purchased Riskified securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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