Riskified Ltd.

The complaint alleges that Riskified’s IPO Registration Statement made inaccurate statements of material fact by failing to disclose adverse facts that existed at the time of the IPO, specifically that: (i) as its user base expanded, Riskified’s machine learning platform had deteriorated (rather than improved as previously represented); (ii) Riskified had expanded its customer base into industries with relatively high rates of fraud, including cryptocurrency and remittances payments; (iii) as a result, Riskified was experiencing significantly higher chargebacks and cost of revenue, coupled with depressed gross profits during its third fiscal quarter in 2021; (iv) the Registration Statement’s representations regarding historical financial and operations metrics and market opportunities did not accurately reflect the actual business prior to, and at the time of the IPO.

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