The 9th U.S. Circuit Court of Appeals said an investor who bought shares in Slack Technologies’ direct listing can sue the company for misrepresentations, signaling that laws written for more traditional offerings apply to the new method, Reuters reports.
Ruling 2-1, the appeals panel found that investor Fiyyaz Pirani can sue the company and its executives for alleged misstatements in the offering documents without proving the shares he bought in the 2019 listing were registered, rather than unregistered.
The workplace communication software company was among the first to use a direct listing after the SEC approved the process three years ago. Read more.
