Printer Kornit Faces Trimmed Investor Suit as Underwriters Exit

Kornit Digital Ltd. investors adequately alleged some of their claims in a proposed class action alleging the printing company misrepresented its competitiveness, a federal court ruled.

But the investors can’t proceed with claims against Kornit’s underwriters Citigroup Global Markets Inc., Barclays Capital Inc., Goldman Sachs & Co., and Morgan Stanley & Co., Judge Madeline Cox Arleo said. Arleo’s two-page order, docketed Friday in the US District Court for the District of New Jersey, followed a hearing a day earlier and didn’t explain her reasoning.

• The investors alleged the apparel and textile printing company inflated its share ...