MaxLinear, Silicon Motion Beat Investor Suit Over Failed Deal

Telecommunications company MaxLinear Inc. and Taiwanese chip maker Silicon Motion Tech. Corp. overcame a lawsuit alleging they misled investors over their dashed $3.8 billion merger, a federal judge ruled.

Investment funds insufficiently alleged SIMO omitted that it purportedly breached the acquisition agreement or that its executives knew or should’ve known MaxLinear wouldn’t end up buying it, Judge Cathy Ann Bencivengo said Tuesday, tossing the lawsuit with prejudice.

The US District Court for the Southern District of California judge reaffirmed that the lead plaintiffs, a group of private investment funds, lacked statutory standing to sue MaxLinear for securities fraud because they ...