Volonte v. Domo, Inc.
Volonte v. Domo, Inc., 2020 UT App 25 (Tenney, J.)
Mr. Volonte sued Domo in Utah state court after the company went public, raising claims under the Securities Act of 1933. Domo’s corporate bylaws require that any claims brought against it under the Securities Act be brought in “the federal district courts of the United States of America.” The Utah district court dismissed the suit for improper venue. The court of appeals affirmed, holding:
- A federal forum provision within in a company’s corporate bylaws is enforceable as a binding contract. Thus, shareholders need to file lawsuits the comply with the terms it sets.