Starbucks Investors Re-Add Ex-Executive to Fallen Sales Suit (1)

Starbucks Corp. shareholders convinced a federal judge to re-add a former chief financial officer to their securities fraud suit over representations of the coffee company’s reinvention plan as sales declined.

The pension and benefit funds leading the case only needed to sufficiently allege a securities violation occurred—which they adequately pleaded regarding Starbucks and another ex-executive—and that the CFO was a “controlling person,” Judge John H. Chun said, granting their motion for reconsideration of last month’s partial dismissal. The US District Court for the Western District of Washington judge reiterated Dec. 12 when repleading, the funds should “consider other strong ...