The US Supreme Court has granted Slack Technologies, a subsidiary of Salesforce, an opportunity to evade a shareholder lawsuit regarding the company’s 2019 direct listing. In a unanimous ruling, the court overturned a previous decision that allowed Fiyyaz Pirani’s proposed class action lawsuit to proceed, citing an incorrect interpretation of federal investor protection law. The San Francisco-based 9th US Circuit Court of Appeals has been instructed to review the case.
Pirani’s lawsuit alleged that Slack’s registration statement and prospectus for its direct listing contained misstatements about service outages, customer credit promises, and competition from Microsoft’s rival software, Teams. Slack argued that the lawsuit should be dismissed, as Pirani cannot prove that he purchased registered shares specified in the allegedly misleading registration…
