IPO’s Federal Forum Provision Deemed By California Panel To Be Valid, Enforceable

(May 9, 2022, 9:16 AM EDT) -- SAN FRANCISCO — A California trial court did not err in dismissing a shareholder’s securities class claims brought under the Securities Act of 1933 against a technology company for alleged misrepresentations the company made in offering documents for its initial public offering (IPO) because a federal forum provision (FFP) included in the IPO’s offering documents was valid and enforceable and did not violate the Securities Act or the U.S. Constitution, a California appellate panel ruled in affirming on April 28....

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