High Court Curbs Shareholder Suits in Partial Salesforce Win (1)

The US Supreme Court limited the ability of shareholders to sue over misleading statements issued by companies when they go public through a direct listing, giving a partial victory to Salesforce Inc.’s Slack unit.

The justices on Thursday unanimously set aside a ruling that had let a shareholder suit go forward. Writing for the court, Justice Neil Gorsuch said federal securities law authorizes lawsuits over registration statements only by people who hold shares issued under those documents.

The case was the Supreme Court’s first look at direct listings since the Securities and Exchange Commission authorized the practice in 2018. ...