Uber Must Defend Against IPO Stock Drop, Securities Fraud Suit

Uber Technologies Inc. failed to shake off proposed class claims of securities fraud filed in California federal court related to the sharp drop in its common stock price after the company’s initial public offering last year.

The plaintiffs, led by the Boston Retirement System, have plausibly alleged that Uber “affirmatively created an impression of an optimistic state of affairs” in statements that weren’t mere opinions or corporate puffery, Judge Richard Seeborg said Aug. 7 for the U.S. District Court for the Northern District of California.

The company represented to investors that CEO Dara Khosrowshahi was helping the company turn ...