Section 11 liability

The Supreme Court has agreed to hear a landmark case regarding Section 11 liability for companies going public on the New York Stock Exchange through direct listings.   In 2018, the New York Stock Exchange introduced a new rule, later approved by the SEC, that allowed companies to go public using a “Selling Shareholder Direct Floor Listing,” or a direct listing.  Direct listing permits a company to go public for the first time just by filing a registration statement to allow existing shareholders to sell their shares on the exchange.  Under the previous method, an initial public […]