Care.Com Avoids Securities Suit Over Provider Screening

Care.com Inc. shareholders who sued the company and various executives for securities fraud failed to show any materially false or misleading statements about the platform’s vetting process for caregivers, a federal judge in Massachusetts ruled Friday.

The investors, who purchased common stock in the online family care marketplace, said the executives made statements that misled reasonable shareholders to believe Care did more screening of its 7 million caregivers than it really did.

Shareholders might have wanted Care to provide additional screening, but the statements about the screening it did conduct weren’t false, Judge Denise J. Casper wrote for the U.S. ...