J2 Global Lacked Securities Fraud Intent, 9th Cir. Says (1)

A J2 Global Inc. shareholder failed to adequately allege that the media and cloud services company intended to deceive investors about an acquisition, a $200 million investment in another company, and its accounting practices, the Ninth Circuit affirmed Friday.

Investor Jonathan Espy, who sued on behalf of a proposed class, also failed to show a causal connection between the alleged corrective disclosures in short-sellers’ reports and his stock losses, Judge M. Margaret McKeown said for the appeals court.

“Dissatisfaction with a company’s strategy, management, and approach to accounting, coupled with a stock drop, make for interesting reading but not an ...