Cleary Gottlieb Discusses How Court Allowed Securities Liability for Slack’s Direct Listing

Over the last two years, direct listings – in which companies list their stock on an exchange to enable insiders and early investors to sell their holdings to the public without issuing new shares – have received considerable attention as an alternative to traditional initial public offerings.[1]  Until now it has been assumed that claims under Section 11 of the Securities Act, which generally require plaintiffs to “trace” their purchases to a registration statement, would be difficult to pursue because many shares in a direct listing may be sold without using a registration statement.

On April 21, 2020, however, … Read more

Cleary Discusses 2017 Developments in Securities and M&A Litigation

The trend of increased securities class action filings in federal courts continued from 2016 to 2017.[1] Federal court filings of class actions related to M&A transactions again contributed to the increase.[2] Foreign issuers remained frequent targets of federal securities class actions.[3]

In 2017, the federal courts issued a number of important securities law decisions. Addressing the application of statutory time-bars applicable to securities law violations, the Supreme Court ruled in CalPERS that the Securities Act’s repose period is not subject to class action tolling and held in Kokesh that disgorgement in SEC proceedings is subject to the … Read more