Salesforce Inc.’s Slack Technologies, makers of software used for communications in workplaces, was sued in federal court in a securities fraud class action in 2019. The lower court denied a motion to dismiss.
Slack appealed that ruling and it was recently heard by the U.S. Supreme Court. Slack argued that it could not be sued for alleged violations of Section 11 and 12 of the Securities Act of 1933 because it did not sell its shares through an IPO. It sold existing shares that had been issued earlier.
In arguments to the justices, Slack contended that the original lawsuit should have been dismissed on those grounds. The case is awaiting a ruling.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
