Arcimoto Wins Bid to Toss Shareholder Suit Over FOC Capital Deal

Arcimoto Inc., an Oregon-based electric auto manufacturer, won its bid to dismiss a would be securities class action, after a federal court in New York said the lawsuit failed to allege any material misrepresentations that caused a financial loss to shareholders.

Loss causation isn’t satisfied where a drop in value is based on an individual’s opinion about already known facts, and the alleged corrective disclosure that triggered the decline in share value in this case, “simply parroted facts already in the public sphere,” the US District Court for the Eastern District of New York said.

To the extent that ...