Adobe Board, Executives Allegedly Downplayed Figma Competition

Adobe Inc. directors and executives allegedly misled investors for more than a year, downplaying competition from editing software companies before announcing it would acquire competitor Figma Inc.in 2022, according to a shareholder derivative suit.

Figma’s platform was growing its market share becoming a leader in user experience design, directly competing with Adobe Express and other products in its software suite, which certain directors and executives failed to disclose to investors, says the complaint filed Thursday in US District Court for the District of Delaware.

The Adobe XD user interface design app was also failing to gain traction with customers, ...