UiPath Knocks Down Investor Suit Over Post-Turnaround Setback

UiPath Inc. investors can’t proceed with their proposed class action alleging the technology company misled them about sales and customer relationships as it implemented a turnaround strategy, a federal court ruled.

Federal securities laws don’t “guarantee smooth sailing in turbulent markets,” Judge John P. Cronan said Wednesday for the US District Court for the Southern District of New York. “Nor do they permit disappointed investors to recast business setbacks as actionable fraud,” he said.

The case follows another proposed class action blaming UiPath for stock drops, based on statements by the robotics and artificial intelligence company before and after its ...