Davis Polk partner Michael Flynn was quoted in Law360 regarding the potential path forward for Slack, following a Ninth Circuit panel’s ruling related to the company’s direct listing. The panel ruled that a Slack shareholder can pursue its challenge of the accuracy of Slack’s registration statement, even though the plaintiff could not trace his share purchases to the registration statement. The case is one of first impression, addressing whether shareholders who purchase shares through a direct listing process have standing to challenge a registration statement under the federal securities laws. Michael noted that if Slack petitions for a rehearing and that petition is denied, or if it is granted and the Ninth Circuit panel’s result is affirmed, “it is likely that the company would file a petition for cert in the Supreme Court seeking further review.”

“Slack’s Direct Listing Ruling Could Have Far-Reaching Impact,” Law360 (October 22, 2021) (subscription required)

Read Davis Polk’s September 23, 2021, client update on the ruling.

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