Zendesk Beats Investor Bid to Revive Data Breach Allegations

Zendesk Inc. remains free of allegations it misled investors about a three-year data breach after the Ninth Circuit affirmed the lower court’s ruling that the would-be class failed to sufficiently allege securities fraud.

Investors accuse the customer service software firm of making misleading statements about its data security practices. The district judge correctly determined the challenged statements weren’t false or misleading or made with the necessary intent, the U.S. Court of Appeals for the Ninth Circuit said in an unpublished opinion.

The investors argued that some Zendesk statements misleadingly created an impression that the company had implemented certain data ...