Starbucks Must Face Investor Fraud Claims Over Fallen Sales (1)

Starbucks Corp. and its former CEO Laxman Narasimhan must defend against allegations they misled investors over the coffee company’s reinvention plan as store traffic and sales were declining.

Narasimhan’s abrupt termination in 2024 and repeated touting of his knowledge of the plans helped allege a sufficient inference of intent for securities fraud claims, Judge John H. Chun said while partially dismissing the suit Wednesday.

But the US District Court for the Western District of Washington judge dismissed former Chief Financial Officer Rachel Ruggeri, finding the pension and benefit funds leading the proposed class action didn’t adequately plead a cogent inference ...