Palantir Investor Appeal Hinges on $2.2 Billion in Insider Sales

Palantir Technologies Inc. investors urged a federal appeals court to revive class claims the data analytics company misrepresented its growth potential, with attorneys and judges focused on billions in stock sales by high-profile executives.

Oral arguments in the US Court of Appeals for the Tenth Circuit on Monday drew the $2.2 billion worth of sales by insiders into the centerfold of the investors’ appeal, with judges questioning whether the allegations were strong enough to tell who knew what before transactions were made.

The investors, the California Public Employees’ Retirement System and Shijun Liu, are appealing the dismissal of their proposed ...