QuantumScape Must Face Investor Suit Over Electric Car Batteries

QuantumScape Corp. must face the bulk of a securities lawsuit by investors who say the battery maker misled the market about the viability of its solid-state batteries for use in electric cars, according to a California federal judge’s ruling.

Investors adequately alleged that QuantumScape made false and misleading statements about the conditions under which its batteries were tested and how these batteries stood up to competitors including lithium-ion and conventional batteries, Judge William H. Orrick of the U.S. District Court for the Northern District of California said Jan. 14. Orrick allowed all the case’s claims to advance, except one based ...