Sumo Logic Defeats Investors’ Underpriced-Sale Lawsuit for Now

Sumo Logic Inc. again beat allegations that its merger documents were negligently prepared, but a federal court is allowing investors to replead their proposed class action claiming the software company’s stock was undervalued in the 2023 deal.

Judge Beth Labson Freeman again said that shareholders adequately alleged proxy documents omitted the fact that Sumo Logic beat guidance in the last two fiscal quarters of 2023. But they didn’t sufficiently claim that the purported omissions would’ve mattered to reasonable investors, given that information was publicly available, the US District Court for the Northern District of California judge said in her Tuesday ...