In initial public offerings, insiders are often restricted initially from selling their shares. Securities and Exchange Commission approved the process three years ago. The workplace communication software company was among the first to use a direct listing, an alternative to an initial public offering, after the U.S. 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.Īn attorney for Pirani and a spokesperson for Slack declined to comment on Monday.
Circuit Court of Appeals said an investor who bought shares in Slack Technologies Inc's direct listing can sue the company for misrepresentations, signaling that laws written for more traditional offerings apply to the new method.
0 kommentar(er)
