Exela Loses Bid to Throw Out Investor Suit on Revenue Prediction

Exela Technologies Inc. must face accusations it made misleading statements about revenue predictability after a federal judge in Texas found investors’ new allegations as to mental state sufficient to move forward.

Investors allege the business process automation company misled them about how much of its revenue was predictable. Their latest complaint satisfied heightened pleading requirements for securities fraud “concerning at least one theory of liability,” so the suit can proceed, the U.S. District Court for the Northern District of Texas said.

The investors say that Exela told them 90% of its revenue was predictable, when in reality about 20% ...