Canoo Beats Investor’s Bid to Escape ‘Short-Swing Profit’ Suit

DD Global Holdings Ltd. must face a lawsuit from Canoo Inc., an electric vehicle startup, that seeks to claw back over $61 million the investor allegedly profited in share deals, after a federal judge refused to dismiss the case.

Judge Mary Kay Vyskocil in the US District Court for the Southern District of New York acknowledged Canoo’s theory about DD Global’s profit from the transactions may be “novel or even ‘bizarre,’ as DD Global contends,” but allowed the case to proceed.

“Whether or not Canoo’s proposed calculation of profits is viable is an issue to be taken ...