Zuora Board, Benchmark Face Insider Sales Suit Over RevPro Deal

A Zuora Inc. investor sued its officers and directors in Delaware, claiming some of them—along with its backers at venture capital firm Benchmark—sold millions worth of stock when they knew its price was inflated by its scheme to hide problems integrating a software acquisition.

“The company’s marketing was loaded with improper statements concerning the ability of Zuora’s suite of products to operate smoothly with each other,” but in fact it “was experiencing severe risks to its overall business,” the lawsuit says.

Meanwhile, insiders including Benchmark made $53 million worth of sales based on “material, nonpublic information” while falsely hyping Zuora ...