Chip Maker MaxLinear Defeats Investor Suit Over Failed Merger

Investment funds that purchased shares in a Taiwanese silicon chip manufacturer can’t proceed with a suit against MaxLinear Inc. for allegedly misrepresenting its commitment to a merger with that company, a federal court ruled.

A recent appeals court decision compels the conclusion that the funds lack standing to sue MaxLinear for securities fraud because they didn’t hold its stock during the period of the alleged misrepresentations, Judge Cathy Ann Bencivengo said Wednesday for the US District Court for the Southern District of California. She dismissed the proposed class action with a chance to re-plead.

• The funds allege that MaxLinear made ...