Palo Alto Networks Sheds Investors’ Suit Over 28% Stock Drop

Palo Alto Networks Inc. stamped out an investor lawsuit alleging the cybersecurity company misrepresented customer appetite to inflate its stock price before a major selloff.

The investors leading the proposed class action didn’t fix the “core failure” of their prior complaint, Judge Charles R. Breyer said. They failed to plead specifics supporting that sales strategy statements were misleading at the time they were made. The US District Court for the Northern District of California judge tossed the suit with finality Tuesday, adding that the shareholders again failed to adequately allege CEO Nikesh Arora’s intent or reckless disregard ...