Spac Litigation News Today

As my Mintz colleague, Peter Saparoff, suggested a few years back, Section 18 of the Securities Exchange Act of 1934, "while seldom used in the past, has been increasingly used by institutional investors...

A list of several recent opinions from the Delaware Court of Chancery relating to special purpose acquisition companies SPACs that provide helpful guidance to sponsors, investors and practitioners. A breakdown of Delaware law still apply in the SPAC context.

A list of several recent opinions from the Delaware Court of Chancery relating to special purpose acquisition companies SPACs that provide helpful guidance to sponsors, investors and practitioners. A breakdown of Delaware law still apply in the SPAC context.

It seems everyone is taking a second look at SPACs as the number of lawsuits against these alternative IPOs continues to increase. SEC commented on the liability risks of SPACs under securities laws following heightened scrutiny of these blank-check companies.

Monday, April 5, 2021 Not far behind the dramatic increase in the use of special purpose acquisition companies (SPACs) is a corresponding increase in the number of shareholder lawsuits and increased activity at the US Securities and Exchange Commission (SEC). In recent days, Reuters reported that the SEC opened an inquiry seeking information on how underwriters are managing the risks involved in SPACs, [i] and the SEC’s Division of Corporation Finance (Corp Fin) and acting chief ac...