Best Buy Beats Stockholder Suit Over Earnings Statements

Best Buy Co. won dismissal of long-running claims by stockholders who alleged the company misrepresented the value of its performance.

The plaintiffs in the case, originally filed as a class action, failed to show that they relied on the company’s allegedly erroneous statements in buying Best Buy stock, the U.S. District Court for the District of Minnesota said March 8.

The U.S. Court of Appeals for the Eighth Circuit in April 2016 vacated class certification, finding Best Buy rebutted the plaintiffs’ “fraud-on-the-market” theory by showing the alleged misrepresentation had no effect on share price.

To proceed with their claims, the ...