Tag: Slack

Even in Direct Listing, Section 11 Plaintiff Must Trace Shares to Registration Statement | The D&O Diary

The U.S. Supreme Court – in a short, concise, unanimous opinion – has ruled that to assert Section 11 claims against Slack in connection with the company’s June 2019 direct listing, the plaintiff must plead and prove that he purchased shares pursuant to Slack’s allegedly misleading registration statement. Slack had offered both registered and unregistered shares in the direct listing.…

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Slack – Bloomberg

One question is: If you buy stock in a direct listing, and the stock drops and you have complaints about the company’s disclosure, do you get to sue under section 11 (because it’s basically an IPO), or do you have to sue under section 10 (because it is not actually an IPO)? Slack Technologies Inc. went public through a direct listing in June 2019.…

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Guest Post: Will the Supreme Court Cut Securities Plaintiffs Some Slack?  | The D&O Diary

On April 17, 2023, the Supreme Court held oral argument in Slack Techs. LLC v. Pirani—a case regarding standing under Sections 11 and 12(a)(2) of the Securities Act of 1933 (the “’33 Act”) that is being closely watched by the D&O bar.  The Court will decide whether plaintiffs bringing these claims after buying stock through a direct listing need to…

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