Zuora Investors Win Round in Product Integration Stock Drop Suit

Zuora Inc. must face claims it misled investors about challenges integrating a new product, after a California federal district judge rejected its bid to dismiss the suit.

The software company’s investors adequately alleged that Zuora gave them the impression its products were working together properly when they weren’t, the U.S. District Court for the Northern District of California said Tuesday.

Zuora argued that all of the challenged statements were either “inactionable statements of corporate optimism” or protected under the Private Securities Litigation Reform Act’s safe harbor for forward-looking statements, Judge Susan Illston’s order said.

But the investors sufficiently alleged that ...