Slack Hid Money Woes So Execs Could Cash In, Suit Says
Law360 (May 11, 2020, 8:16 PM EDT) -- A shareholder of messaging platform Slack Technologies Inc. filed a derivative suit on Friday in Delaware federal court, alleging the company's executives hid its financial woes and the success of a competitor around the time of its direct public offering, causing a sharp decline in its stock shortly after executives reaped millions.
The complaint by Illinois resident Kristen Gorenberg, with allegations similar to an investor suit filed in September in California federal court, claims that Slack's platform had "myriad service outages" in 2018 and the "platform remained highly susceptible to such outages," a fact hidden from investors at the time of...
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