Allbirds Beats IPO Investor Suit Over Apparel Sales Shift (1)

Allbirds Inc. again defeated allegations that the footwear brand misled shareholders about its sales strategy surrounding its 2021 initial public offering, a federal judge ruled.

The investors didn’t adequately allege the level of intent or reckless disregard to carry securities fraud claims, said Judge Araceli Martínez-Olguín for the US District Court for the Northern District of California when tossing the lawsuit. She’s letting the lead plaintiffs file another amended complaint within three weeks of her Monday order.

This is the second time that she has dismissed their complaint.

Lead plaintiffs Qu Jinghua and Yau Noi asserted Securities Act of 1933 ...