ZTO Express Delivered a Win in Investor Suit Over 2016 IPO

ZTO Express (Cayman) Inc. won dismissal July 17 of an investor suit over 2016’s largest U.S. initial public offering.

Investors can’t pursue their would-be class claims against the Chinese delivery firm because they didn’t sufficiently allege that ZTO misled them about its IPO, the U.S. District Court for the Southern District of New York said.

But the investors can amend the complaint to fix the problems, the court said.

ZTO allegedly left important details out of the offering documents for its U.S. IPO. The company didn’t disclose lower network transit fees, out of control transportation costs, past negotiations, or ...