US Supreme Court throws out ruling against Slack over direct listing

The U.S. Supreme Court on Thursday gave Salesforce Inc’s Slack Technologies another chance to avoid a lawsuit over the workplace communications software company’s 2019 direct listing.

In a 9-0 ruling, the justices threw out a lower court’s decision that had let the proposed class action lawsuit filed by shareholder Fiyyaz Pirani proceed under what the Supreme Court concluded was an incorrect reading of a federal investor protection law. A direct listing is an alternative to a traditional initial public offering.

The justices ordered the San Francisco-based 9th U.S. Circuit Court of Appeals to reconsider the case.