Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Slack Technologies, Inc. (“Slack” or the “Company”) common stock pursuant and/or traceable to the registration statement and prospectus (collectively the “Registration Statement”) issued in connection with Slack’s initial public offering (“IPO”) on or around June 20, 2019, which offered over 283 million shares of Class A common stock.
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.
Current Status of Case:
On February 11, 2025, the United States Court of Appeals for the Ninth Circuit reversed the District Court’s partial denial of Defendants’ Motion to Dismiss and remanded with instructions to dismiss the Complaint in full. On July 10, 2025, Plaintiff filed a Petition for a Writ of Certiorari to the United States Supreme Court. 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.