Palo Alto – November 20, 2025 – A Cooley team secured a decisive victory for its client Nextdoor Holdings, the essential neighborhood network, when Judge Edward J. Davila of the US District Court for the Northern District of California granted the defendants’ motion to dismiss with prejudice in the long-running securities class action.

The suit alleged that Nextdoor misled investors by overstating the proportion of active users. Judge Davila tossed the proposed class action, agreeing with the defendants that the investor failed to allege that Nextdoor’s CEO misrepresented user activity, failed to allege a sufficient inference of intent or recklessness, and failed to show that the disclosure of the alleged misstatements directly resulted in investor losses.

Read the order

The Cooley team representing Nextdoor was led by Patrick Gibbs, Tijana Brien and Shannon Eagan.

The case is Frankie J. Adamo v. Nextdoor Holdings, Inc., et al. before the Northern District of California, San Jose Division (Case No. 5:24-cv-01213-EJD).

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