Bloomberg Law
June 18, 2020, 7:37 PM

Slack Sued for Records Over App Outages After 2019 Market Debut

Mike Leonard
Mike Leonard
Legal Reporter

Slack Technologies Inc.'s directors were hit with a Delaware records lawsuit Thursday seeking to probe claims that they overstated the encrypted messaging platform’s capacity and reliability to inflate its stock before taking it public last year.

The suit targets the wave of app outages that plagued Slack after its 2019 New York Stock Exchange debut. The outages led Slack’s shares to tank when it emerged in September that the company had paid out $8.2 million in credits after failing to keep its pledge to offer “uninterrupted” service 99.99% of the time.

The stock was down about 60% in mid-March, but ...

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