Riskified Ltd., a software company that helps merchants avoid fraud and chargebacks, shook off a potential shareholder class action accusing the company of omissions and misstatements during its July 2021 initial public offering.
The US District Court for the Southern District of New York granted the company’s motion to dismiss on June 2 because its disclosures were “robust.” Additionally, the statements the shareholders said were misleading are clear when read in context, the court said.
Shareholders filed the securities fraud action on May 2, 2022, after Riskified’s share price fell to 70% of the IPO price.
The court rejected the ...
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