Uber and Beyond Meat want to cut off the state-court option. (In general, corporations prefer not to litigate in more than one jurisdiction and prefer federal court, where judges may be more familiar with securities class action procedures.) In their filings with the Securities and Exchange Commission in April, both companies said their certificates of incorporation in Delaware will include clauses that require shareholders to bring Securities Act claims exclusively in federal court.
But here’s the thing: The latest word on such provisions under Delaware law is that they are invalid.
via Uber, Beyond Meat rely on controversial clause to steer potential suits over IPOs – Reuters.
