Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Free Newsletter Sign Up

Dropbox Beats California Bid to Revive Securities Class Suit (1)

May 13, 2022, 11:27 PMUpdated: May 16, 2022, 11:11 PM

Dropbox Inc. will avoid facing a securities class action in California state court after an appellate panel on Friday refused to void provision in the company’s bylaws designating federal district court as the exclusive forum for claims under the Securities Act of 1933.

Jon Simonton sued Dropbox in 2019 on behalf of a proposed class of shareholders, alleging the registration statement the company issued for its 2018 initial public offering was inaccurate and misleading.

A trial court in San Mateo County granted Dropbbox’s motion to dismiss the suit based on a forum selection provision in its bylaws.

The California Court ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.