Root Inc. Gets Dismissal of Investor Suit Over Costs Affirmed

Root Inc. didn’t make false or misleading statements about its costs to acquire car insurance customers in its initial public offering documents, the Sixth Circuit affirmed Monday in a securities suit.

Two company statements challenged in the proposed investor class action were based on historical data and weren’t inaccurate, the US Court of Appeals for the Sixth Circuit said. And a third statement, saying customer acquisition costs “could” rise substantially, was accompanied by cautionary statements, Judge Alice M. Batchelder said.

• The claims, under Sections 11 and 12 of the Securities Act of 1933, needed to meet a heightened pleading standard ...