Directors of San Francisco-based Fitbit Inc. will have to defend investor allegations that they knew about major problems with the company’s leading products ahead of an initial public offering in 2015, after a Chancery Court judge on Friday refused to dismiss derivative claims of insider trading.

The lawsuit alleges that Fitbit’s brass discovered widespread issues with the San Francisco-based fitness company’s heart-rate monitoring technology as early as January 2015 but failed to disclose the scope and severity of the problem before its IPO that November, which raised $416 million. According to the complaint, directors used that knowledge to structure the offering in their favor, and sold 6.2 million shares for a total of $115 million.