According to the Complaint, Slack Technologies, Inc. offers a business technology platform that allows users to share and aggregate information from other software, take action on notifications, and advance workflows in a multitude of third-party applications.
In June 2019, Slack went public through the Offering of its Class A common stock with a reference price of $26.00.
The Complaint alleges that the Registration Statement filed with the SEC was false and misleading and omitted to state material adverse facts. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company’s Slack Platform was susceptible to recurring service-level disruptions; (2) that such disruptions were increasingly likely to occur as the Company scaled its services to a larger user base; (3) that the Company provides credits even if a customer was not specifically affected by service-level disruptions; (4) that, as a result, any service-level disruptions would have a material adverse impact on the Company’s financial results; and (5) that, 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.
Plaintiff filed an amended Complaint on January 6, 2020. On January 8, the Court issued an Order appointing Lead Plaintiff and Counsel. Defendants filed a Motion to Dismiss the amended Complaint on January 21. On April 21, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. Lead Plaintiff was given leave to amend the Complaint. On June 15, Defendants filed a petition with the Court of Appeals for permission to appeal the Court's ruling of April 21. On July 23, the Court of Appeals accepted the interlocutory appeal. On July 30, the Court issued an Order staying the case pending resolution of the interlocutory appeal.
On September 20, 2021, the Court of Appeals affirmed the District Court's Order denying in part the Motion to Dismiss.
Slack petitioned the Supreme Court to review the decision of the Court of Appeals on August 31, 2022.