| COMPANY |
Slack Technologies, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
19-cv-05857 |
| JUDGE |
The Honorable Susan Yvonne Illston |
| CLASS PERIOD |
Pursuant to and/or traceable to the company’s June 2019 initial public offering |
| SECURITY TYPE |
Common Stock |
Case Background:
On September 19, 2019, the initial complaint in this securities class action was filed against Slack Technologies, Inc. (“Slack” or the “Company”), and certain of Slack’s directors and officers, asserting violations of Sections 11, 12 and 15 of the Securities Exchange Act.
The complaint alleges that the Registration Statement filed with the U.S. Securities and Exchange Commission was false and misleading and omitted to state material adverse facts. Specifically, the complaint alleges that Defendants failed to disclose to investors that: (1) the Company’s Slack Tec’s Slack Platform was susceptible to recurring service-level disruptions; (2) such disruptions were increasingly likely to occur as the Company scaled its services to a larger user base; (3) the Company provides credits even if a customer was not specifically affected by service-level disruptions; (4) as a result, any service-level disruptions would have a material adverse impact on the Company’s financial results; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
This is a federal securities class action on behalf of all persons and entities that purchased or otherwise acquired Slack common stock pursuant and/or traceable to the Company's registration statement and prospectus, which offered over 283 million shares of Class A common stock that began publicly trading on or around June 20, 2019.
Current Status of Case:
Lead Plaintiff filed an Amended Complaint on January 6, 2020. On April 21, 2020, the Court issued an order granting in part and denying in part Defendants' Motion to Dismiss. On June 5, 2020, the Court granted Defendants’ Motion to Certify Order for Interlocutory Appeal. On June 15, 2020, Defendants filed a Petition for Interlocutory Appeal with the Ninth Circuit Court of Appeals, which was granted on July 23, 2020. On September 20, 2021, the Ninth Circuit Court of Appeals affirmed the District Court’s partial denial of the Motion to Dismiss. On May 2, 2022, Defendants’ petition for rehearing and rehearing en banc was denied. On June 1, 2023, the Supreme Court of the United States remanded the case to the Ninth Circuit Court of Appeals and briefing is ongoing in that Court. The District Court action remains stayed. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.