Sumo Logic Gets Shareholders’ Underpriced-Sale Lawsuit Dismissed

Sumo Logic Inc. investors have so far fallen short in showing that the software company’s proxy documents were negligently prepared, a federal court said in dismissing claims that the stock was undervalued in a merger.

But Judge Beth Labson Freeman‘s decision June 28 for the US District Court for the Northern District of California gave the shareholders a toehold. The plaintiffs adequately alleged that the software company’s proxy documents omitted positive data, and they will have another chance to plead negligence and other aspects of their proposed class action, she said.

• Amid volatility in Sumo Logic’s stock price, Francisco ...