Slack Defeats Investor’s Direct Listing Suit After SCOTUS Trip

An investor can’t sue over allegedly misleading statements in Slack Technologies LLC‘s direct listing prospectus and registration statement, the Ninth Circuit ruled Monday on remand from the US Supreme Court.

The case against Slack, now a subsidiary of Salesforce Inc., has highlighted the question of how federal securities laws apply to a relatively new vehicle for bringing companies public, the direct listing. Here, the question is whether an investor’s securities must be “traced” to the registration statement or prospectus in order for that person or group to have standing to sue over alleged misstatements in those documents under ...