A federal appeals panel ruled against an investor seeking to reinstate her securities fraud allegations against Desk Metal Inc. on Monday.
Sophia Zhou is ineligible to pursue a scheme liability claim and did not demonstrate that any statements made by Desktop Metals were materially false or misleading, as stated by the US Court of Appeals for the First Circuit in an opinion. A unanimous decision from a three-judge panel upheld the dismissal from September 2023 of the class action lawsuit Zhou and fellow investors had filed against the 3D printer company, claiming securities fraud.
“We conclude that Zhou did not preserve a scheme liability claim …
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