Fewer Lawsuits Ease Public Path as Reddit Wakes IPO Market

Details

Publish Date:

March 21, 2024

Author(s):

Barash, Martina

Source:

Bloomberg Law

Related Person(s):

Related Organization(s):

Foreign Corrupt Practices Act Clearinghouse (FCPAC),
Stanford Program in Law, Science & Technology,
Securities Class Action Clearinghouse (SCAC),
John M. Olin Program in Law and Economics,
Arthur and Toni Rembe Rock Center for Corporate Governance

Summary

Those forum selection clauses blocking state-court suits may be reducing IPO litigation in federal courts as well. If weaker cases used to migrate to state court because federal courts had more expertise in evaluating securities claims, “then cases that are more likely meritless will not get filed” with state courts now unavailable, said Joseph Grundfest of Stanford Law School.