Car Battery Maker QuantumScape Must Face Shareholder Suit

By Katryna Perera (January 18, 2022, 5:35 PM EST) -- A California federal judge has told vehicle battery maker QuantumScape that it must face nearly all the securities class action claims made by investors, who say published articles revealed the company made false statements about the quality of its batteries and the tests it used to measure performance.

In an order Friday, U.S. District Judge William H. Orrick said that QuantumScape's motion to dismiss is denied except for one specific challenged statement, which Judge Orrick labeled as corporate puffery.

The judge said the remaining allegations by the plaintiffs were sufficient to state a claim and adequately alleged scienter and loss causation....

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