Frip, would you please cite the Nasdaq Initial Listing requirement that there be no open lawsuits against a company? I don't see it in Nasdaq's rules here:
https://listingcenter.nasdaq.com/assets/initialguide.pdf

It doesn't entirely make sense that an open lawsuit would block Nasdaq listing. If a person had a short position in a company, he could indefinitely block listing by filing lawsuits in different states.

I do see that the company must disclose any lawsuits against it to Nasdaq. That isn't the same.

I don't claim any particular knowledge in this field.