Slack Technologies, LLC v. Pirani
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A short, plain-English overview of Slack Technologies, LLC v. Pirani.
In Slack Technologies, LLC v. Pirani, the Supreme Court addressed the requirements for a plaintiff to state a claim under § 11 of the Securities Act of 1933. The Court determined that a plaintiff must plead and prove that they purchased securities registered under a materially misleading registration statement. The case was vacated and remanded for further consideration by the Ninth Circuit.
Holding
The single most important “bottom line” of what the Court decided in Slack Technologies, LLC v. Pirani.
The Court held that § 11 requires a plaintiff to plead and prove that he purchased shares traceable to the allegedly defective registration statement.
Key Quotes
Short excerpts from the syllabus in Slack Technologies, LLC v. Pirani that support the summary and concepts above.
Section 11 of the 1933 Act requires a plaintiff to plead and prove that he purchased securities registered under a materially misleading registration statement.
The Court concludes that the better reading of § 11 requires a plaintiff to plead and prove that he purchased shares traceable to the allegedly defective registration statement.
Slack's reading of the law is the better one.
