Nextdoor, Ex-CEO Defeat Investor’s ‘Active User’ Base Suit (1)

Nextdoor Holdings Inc. and former CEO Sarah Friar beat allegations the neighborhood-based social media platform overhyped the proportion of active users it had after its blank-check merger to go public.

The investor leading the case’s new argument that Friar misrepresented the proportion of on-platform active users rather than the definition of active users wasn’t adequately supported, Judge Edward J. Davila said while tossing the proposed class action with finality Thursday.

Investor Keith Hollingsworth alleged that the 2022 statement misled shareholders about how many users were “active” in Nextdoor’s community when half of them truly weren’t.

“Vaguely describing ‘active users’ as ...