Battery Maker Enovix Dodges Investor Suit Over Factory Progress

Enovix Corp. investors didn’t adequately allege the company made false statements about tests of its factory equipment, a federal court ruled, dismissing for now a proposed class suit claiming securities fraud.

The shareholders also didn’t show the necessary level of intent, Judge Susan Illston said Tuesday for the US District Court for the District of Northern California.

Enovix went public through a merger with a special purpose acquisition company. Numerous companies that formed through such de-SPAC mergers have faltered following the deals’ peak in 2020 and 2021, sending scores of companies’ disgruntled investors to the courts.

The Enovix investors alleged ...