“Because the plaintiff previously conceded that he could not make the required showing of traceability, all of his claims failed,” the Ninth Circuit wrote in its opinion, authored by Circuit Judge Eric Miller.
Background of the Case
Pirani accused Slack of misleading investors by failing to disclose potential financial liabilities tied to a service outage that occurred about a week after the company’s 2019 direct listing on the NYSE.
However, Slack argued that its direct listing structure made traditional securities claims inapplicable, as the plaintiff couldn’t prove whether he purchased shares issued by Slack itself or shares sold by early investors.
Legal Teams and Next Steps
The Ninth Circuit panel included Circuit Judge Sidney Thomas and Judge Jane Restani of the U.S. Court of International Trade, alongside Judge Miller.
Representation:
- Fiyyaz Pirani is represented by Russell & Woofter LLC and Bragar Eagel & Squire PC.
- Slack Technologies is represented by Gibson Dunn & Crutcher LLP.
This ruling marks a significant win for companies utilizing direct listings, reinforcing the traceability hurdle that investors must overcome in similar securities lawsuits.
