Manhattan Associates Inc. investors can proceed with their proposed class action alleging the software company misrepresented the effects of its move to cloud-based products, a federal court ruled.
The investors adequately alleged some targeted statements were false or misleading, Judge Tiffany R. Johnson said Tuesday for the US District Court for the Northern District of Georgia. But other statements were protected as forward-looking or inactionable because they merely expressed corporate optimism, Johnson said.
The investors sued after Manhattan Associates’ stock lost nearly a quarter of its value in a single day.
They alleged the company misled them about the strength …