Firm Chairman Brad Karp, litigation partner David Friedman and counsel Daniel Sinnreich published an expert analysis in Law360 discussing the U.S. District Court for the Northern District of California’s June ruling in Shnayder v. Allbirds Inc. The case stems from a registration statement filed in connection with retail footwear company Allbirds Inc.’s initial public offering in November 2021.
In “IPO Suit Reinforces Strict Section 11 Tracing Requirement,” published on September 24, the authors explain how the decision reinforces a recent U.S. Supreme Court ruling that a plaintiff stating a claim under Section 11 of the Securities Act of 1933—which creates liability for a misleading registration statement—must prove that they purchased shares directly traceable to the allegedly misleading registration statement. The authors also discuss how the Allbirds ruling may apply to future litigation surrounding IPOs.
» read the article
Related Insights
