MoneyLion Gets Dismissal of Suit Over Reverse Stock Split

MoneyLion Inc. shareholders didn’t sufficiently allege the company failed to disclose information that would have been material to reasonable shareholder when it filed a proxy statement about a reverse stock split that resulted in the conversion of preferred shares to common shares, a federal judge said.

Canaan X LP and several investment funds didn’t plausibly allege with particularity claims for of transaction causation and materiality under Section 14(a) of the Securities and Exchange Act of 1934, and the US District Court for the Southern District of New York dismissed the claim as a result. Judge P. Kevin Castel also dismissed ...