Slack will ask Supreme Court to review novel ‘direct listing’ case

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Publish Date:
May 4, 2022
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Source:
Reuters
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Summary

The company and its amici, including the Securities Industry and Financial Markets Association, the U.S. Chamber of Commerce, the Cato Institute and the influential Stanford Law School professor Joseph Grundfest, can’t claim a circuit split on Securities Act claims arising from direct listings, since the 9th Circuit was the first court to address the issue. But it’s a very good bet that Slack will argue the majority ruling contradicts precedent from at least five other circuits that restrict Securities Act claims to investors who can trace their shares directly to allegedly misleading offering documents.

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