Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
02/23/2022
Initial Lawsuit
05/02/2022
Lawsuit Progression
07/01/2022
This is a securities class action on behalf of all persons or entities who purchased Riskified class A ordinary shares in or traceable to the company’s July 2021 initial public offering (IPO).
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:
(a) that as Riskified expanded its user base, the quality of the company’s machine learning platform had deteriorated (rather than improved as represented in the registration statement), because of, among other things, inaccuracies in the algorithms associated with onboarding new merchants and entering new geographies and industries;
(b) that Riskified had expanded its customer base into industries with relatively high rates of fraud – including partnerships with cryptocurrency and remittance business – in which the company had limited experience and that this expansion has negatively impacted the effectiveness of the company’s machine learning platform;
(c) that, as a result of (a)-(b) above, Riskified was suffering from materially
higher chargebacks and cost of revenue and depressed gross profits and gross profit margins during its third fiscal quarter of 2021; and
(d) that, as a result of (a)-(c) above, the registration statement’s representations regarding Riskified’s historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of the company prior to and at the time of the IPO, and were materially false and misleading, and lacked a factual basis.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.