Fox Factory Beats Investor Suit on Post-Pandemic Demand Dip (1)

Fox Factory Holding Corp. escaped allegations it misled investors about the strength of demand for its bicycle parts post-pandemic, a federal judge said.

Investor Ryan Marselis failed to state a claim, as the lead plaintiff’s most recent complaint “does not even attempt to explain why specific statements are misleading,” Judge Thomas W. Thrash, Jr. said in his opinion and order in the US District Court for the Northern District of Georgia on Thursday. Thrash is letting Marselis re-plead.

Marselis’ attempt to “plead general falsity” doesn’t stand up to bring securities fraud claims, Thrash said. Rather than alleging how specific Fox ...