A Manhattan Supreme Court judge has dismissed a securities class action claim against Brazilian online retailer Netshoes (Cayman) Limited, finding the suit failed to support allegations that the company had purposely misrepresented key aspects of its business to would-be investors.
The cause of action, brought under federal securities law, claimed that the Brazilian online sporting goods retailer “painted a materially false and misleading picture of Netshoes’ business” in the face of increasing competition, which improperly lifted its IPO offering price in 2017. Investors said the alleged missteps ultimately caused Netshoes’ stock price to collapse from its $18 per-share IPO price to a low of $2.87 per share 13 months later.
