Capri Investors Fail to Advance Suit Over Dumped Tapestry Merger

Handbag giants Capri Holdings Ltd. and Tapestry Inc. defeated allegations they misled investors over the viability of their proposed $8.5 billion combination that fell under federal antitrust scrutiny.

Most alleged misstatements weren’t actionable, and the investors mostly failed to plead scienter, or the level of intent or recklessness necessary to defraud, Judge Stephanos Bibas said, dismissing the suit with the ability to replead Tuesday. The investors adequately alleged scienter for downplaying competition concerns, but the related statements were forward-looking, said the circuit judge sitting by designation in the US District Court for the District of Delaware.

“Making predictions about antitrust ...