Flex Ltd. Investors Appeal Loss on Nike Shoe Contract Lawsuit

Flex Ltd. shareholders are appealing the dismissal of their lawsuit alleging the company misled them about the success of a contract to make Nike shoes in Guadalajara, Mexico, the lead plaintiff informed the district court Thursday.

The plaintiffs alleged the company told them the project was expected to reach profitability by March 2018, despite manufacturing problems that prevented production targets from being reached.

The U.S. District Court for the Northern District of California dismissed their claims in December. Many of the statements were non-actionable corporate puffery, none were demonstrably false under the Private Securities Litigation Reform Act’s heightened pleading standard, ...