Aerohive Ditches Securities Fraud Suit Over Sales Strategy

Aerohive Networks Inc. doesn’t have to face a class suit accusing it of misleading investors about problems with its sales strategy, a federal judge said Feb. 5.

The cloud computing firm didn’t hide problems with salesforce retention, revenue forecasting, or its Dell Inc. partnership from investors, according to a California federal court opinion dismissing the case.

Aerohive’s sales strategy failures, including attempts to offer a cheaper product and then upsell customers to a more profitable version, should have been clear, and the company should have disclosed them, the investors said.

But the investors based many of their claims on information ...