Securities practitioners expressed surprise at some key US Supreme Court justices’ hard look at the implications of a recent New York Stock Exchange rule allowing a new form of public trading of stock, the so-called direct listing method, Bloomberg reports.
The ruling “is going to be more complicated” than most securities lawyers anticipated, said Michael Fay of Boies Schiller Flexner in New York.
The case heard by the high court focuses on a 2018 NYSE direct listing rule allowing the public trading of shares without an initial public offering.
Among the points of contention in the case:
- Slack’s registration papers allegedly misled investors
- Investor’s standing to sue without ‘tracing’ is at issue. Read more.
