Enovix Routs Investors’ Bid for Class Status in Factory Lawsuit

Enovix Corp. investors failed to convince a federal judge to let them proceed as a class with allegations the battery producer hid its decision to waive a testing requirement for factory equipment coming from China before stopping commercial production at the facility where it was installed.

Enovix rebutted a presumption that a class of shareholders relied via its stock price on the company’s misstatement about its equipment, because there’s a mismatch between the contents of the disputed language and three stock-price deflating disclosures, Judge Susan Illston said Tuesday. In doing so, the judge cited a widely-watched securities defense bar tool ...