The United States Supreme Court Will Hear Case Presenting Question Of Whether Investors Have Standing To Bring Securities Act Claims In Connection With Shares They Cannot Prove Were Registered Under The Registration Statement They Allege Is False Or Misleading, Such As Shares Purchased Through Direct Listings
On December 13, 2022, the United States Supreme Court granted a petition for certiorari to review a split decision by the Ninth Circuit holding that plaintiff-investors had standing under the Securities Act of 1933 (the “Securities Act”) to sue a workplace communication software company (the “Company”) based on shares purchased through a direct listing. Slack Technologies, LLC, et al., v Fiyyaz Pirani, No. 22-200 (U.S. Dec. 13, 2022). The issue before the Supreme Court is whether Sections 11 and 12(a)(2) of the Securities Act require plaintiffs to plead and prove that they bought shares that were registered under the registration statement they claim was misleading.