Adobe Beats Investor Suit Over Proposed Figma Deal for Now (1)

Adobe Inc. won’t face allegations that the creative-cloud company misled investors about its competitiveness ahead of a now-abandoned acquisition before the stock’s biggest selloff in more than a decade, a federal judge ruled.

Projections about Adobe and its design tool’s prowess compared to Figma Inc. and other competitors amounted to corporate puffery, not actionable misstatements, Judge John G. Koeltl said for the US District Court for the Southern District of New York Thursday while dismissing the investors’ complaint.

The lead plaintiffs didn’t allege any misrepresentations downplaying Figma Design’s direct competition with Adobe XD, its web design tool—in fact, Adobe ...