Sigma Additive Solutions Announces Filing of Definitive Proxy Statement Relating to Proposed Acquisition and Shareholder Vote tmcnet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tmcnet.com Daily Mail and Mail on Sunday newspapers.
Key Points
Between September 2020 and March 2021, at least 35 SPACs have
been hit with one or more shareholder lawsuits filed in New York
state court.
These lawsuits generally allege that SPAC directors breached
their fiduciary duties to shareholders by providing allegedly
inadequate disclosures regarding proposed de-SPAC mergers. Some of
these lawsuits also assert claims against the SPAC itself, as well
as the target company and its board of directors, for allegedly
aiding and abetting the SPAC directors breaches.
Although these cases are in their early stages and assert
claims that are limited in scope, they signify that the
plaintiffs bar is actively monitoring and pursuing SPACs. As
Key Points
Between September 2020 and March 2021, at least 35 SPACs have been hit with one or more shareholder lawsuits filed in New York state court.
These lawsuits generally allege that SPAC directors breached their fiduciary duties to shareholders by providing allegedly inadequate disclosures regarding proposed de-SPAC mergers. Some of these lawsuits also assert claims against the SPAC itself, as well as the target company and its board of directors, for allegedly aiding and abetting the SPAC directors’ breaches.
Although these cases are in their early stages and assert claims that are limited in scope, they signify that the plaintiffs’ bar is actively monitoring and pursuing SPACs. As additional de-SPAC transactions are announced and close, SPAC shareholder lawsuits are likely to multiply, potentially subjecting SPACs, their boards and sponsors to more significant civil risk and exposure.