Bragar Eagel & Squire, P.C., prevail in the Ninth Circuit; Appellate Court Allows Investor Claims Against Slack Technologies, Inc. to Go Forward

Bragar Eagel & Squire, P.C. announce that the United States Court of Appeals for the Ninth Circuit affirmed the April 20, 2020, ruling of the district court which denied in part Defendants' motion to dismiss investors Sections 11 and 12(a)(2) claims against Slack Technologies, Inc. and other defendants.  The Ninth Circuit held that investors had standing to assert claims arising out of direct offering of stock, in which both registered shares and unregistered shares of stock become publicly traded at the same time.  The appellate court rejected Defendants' arguments that investors could not establish the required "tracing" of shares to Slack's registration statement, filed in connection with the public offering.  The court found that because the registration statement was a necessary condition for both the registered and non-registered shares of Slack's stock to trade publicly, all shares were traceable to the registration statement. 

Bragar Eagel & Squire, P.C., is a boutique litigation law firm that focuses on securities litigation and corporate governance litigation. Our attorneys prosecute complex financial matters in federal and state courts throughout the country.

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