The US Court of Appeals for the Ninth Circuit upheld a decision Wednesday that dismissed a proposed investor class action against Uber. A three-judge panel said that the lawsuit failed to connect a series of scandals that Uber faced in 2017 to a decrease in the company’s valuation.

In 2016, Irving Firemen’s Relief & Retirement Fund (Irving), a retirement fund for firefighters in Irving, Texas, acquired Uber securities through one of Uber’s preferred stock offerings. In 2017, there were multiple alleged corporate scandals, including a blog post by former Uber engineer Susan Fowler describing her experiences of sexual harassment; Google affiliate Waymo suing Uber for theft of trade secrets; and a secret Uber program under which Uber collected data from the Uber app and other sources to identify and circumvents officials in jurisdictions prohibiting or restricting Uber operations. By early 2018, investors estimated that there was nearly a 30 percent decline in Uber’s valuation.

Because of this, Irving proposed a class action suit against Uber and its cofounder Travis Kalanick in 2017, alleging a claim of securities fraud under California Corporations Code sections 25400(d) and 25500. The district court dismissed the claim for failure to state a claim. On appeal, a three-judge panel affirmed the dismissal, finding that Irving inadequately alleged that Uber and Kalanick’s alleged fraudulent misstatements and omissions caused its alleged losses.

Irving claimed that the district court erred by applying the federal standard for loss causation rather than the “less-rigid” state law standard. The appeals court held that California law only provided limited guidance on how causation should be applied, and the lower court did not err by looking to federal cases interpreting loss causation claims brought under the Securities Exchange Act.

The panel held that appellants did not adequately allege loss causation because they did not “adequately and with particularity allege that those revelations caused the resulting drop in Uber’s valuation.” A chart was also included in the complaint that showed some Uber investors maintained or increased their company valuation following the scandals. Because of this, the court affirmed the case’s dismissal.