The plaintiffs, a coalition led by three pension plans, contended that Starbucks provided misleading information to bolster investor confidence while internal data signaled a downturn. In their defense, company representatives maintained that the remarks in question addressed historical performance rather than real-time metrics. The court ultimately found no evidence that the executives made flagrantly false statements during the session, effectively shielding the coffee chain from claims of securities fraud regarding these specific disclosures.
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Federal Judge Dismisses Investor Lawsuit Against Starbucks
A Seattle federal judge on Wednesday cleared Starbucks of allegations that the company deceived shareholders regarding its customer traffic metrics. The ruling strikes down a class-action suit which argued that executives intentionally obscured declining foot traffic in the United States and China during a January 2024 earnings call.
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