Fewer Lawsuits Ease Public Path as Reddit Wakes IPO Market (1)

The number of legal challenges companies face upon going public in the US is way down due in part to new roadblocks keeping investors from suing in state court, attorneys say.

Investor suits alleging misstatements in initial public offering documents declined more than 60% in 2023 over the previous year, breaking from a slight uptick across all new securities class actions, according to reports by Cornerstone Research and NERA. The smoother path to public exchanges comes at a critical juncture for the IPO market, where this week’s planned listing by Reddit Inc. may signal a rebound attempt after two years ...