Disco Undercuts Investor Class Status With Mismatch, Court Says

CS Disco Inc. shouldn’t face a class of investors because the company rebutted a presumption of classwide reliance on alleged misstatements about its revenue with a “mismatch” testing appellate courts nationwide, a federal magistrate judge said.

All other factors support certification in the lawsuit alleging Disco misrepresented drivers of its revenue were limited to a few large projects, Magistrate Judge Mark Lane said Tuesday. But he recommended Judge David Alan Ezra deny class status in the US District Court for the Western District of Texas because the legal technology company severed the connection between alleged misrepresentations and the announced lowering ...