DocuSign Investors’ Case Thrown Out With Tough Words From Judge

DocuSign Inc. investors won’t be able to re-file their inadequately pleaded securities case over post-Covid product demand given “problems with the current complaint that make it misleading and confusing,” a federal court ruled.

Judge Vince Chhabria said his review of the software company’s relevant internal documents “makes clear that many of those documents are described in a misleading way in the complaint.”

“Frankly, these misrepresentations would probably justify dismissal of the complaint without further analysis,” Chhabria said Monday in his opinion for the US District Court for the Northern District of California.

In looking through allegations not affected by “mischaracterizations,” ...