Avalara Fails to Shake Renewed Claims Over $8.4 Billion Sale

Avalara Inc. didn’t convince a federal trial court that investors’ remaining claims challenging its $8.4 billion sale to a private equity firm should be dismissed.

All of the claims by lead plaintiff Martin Sohovich were previously dismissed by Judge Marsha J. Pechman of the US District Court for the Western District of Washington. But the Ninth Circuit revived two of the claims and sent them back to Pechman. Her Sept. 12 opinion denied Avalara’s renewed motion to dismiss because she found that Sohovich adequately alleged that Avalara’s projections and statements had been false and misleading.

Sohovich alleged that several false ...