Jay Clayton Discusses Slack Supreme Court Case with the New York Times’ DealBook

February 9, 2023

Jay Clayton, Senior Policy Advisor & Of Counsel at S&C and former Chair of the SEC, was featured in the New York Times' DealBook Newsletter. Jay discusses the amicus curiae brief that he and former SEC Commissioner Joseph Grundfest filed in support of Slack in an appeal before the Supreme Court stemming from Slack's 2019 direct listing on the New York Stock Exchange.
The case involves an unregistered shareholder's claims that Slack made false statements in its prospectus. In their amicus brief, Jay and former Commissioner Grundfest maintain that the plaintiff's argument that he, as a purchaser of unregistered shares, has standing to bring securities claims against Slack, threatens to vastly expand legal risk for companies. “There are already many avenues of liability,” Jay said. “This makes up a whole new one, and adds an imbalance.”
Read the article here.