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SEC Corporation Finance Acting Director Addresses Disclosure Liability Risk Of SPACs - Corporate/Commercial Law

To print this article, all you need is to be registered or login on Mondaq.com. SEC Division of Corporation Finance Acting Director John Coates argued against claims by some practitioners and commentators that Special Purpose Acquisition Companies ( SPACs ) may face lesser securities law liability in the context of a de-SPAC transaction than traditional IPOs. Mr. Coates asserted that the liability risks associated with disclosures in the de-SPAC transaction ( i.e., the second stage business combination transaction in which SPACs issue equity to target owners) could in some ways be higher than in conventional IPOs due to the potential conflicts of interest in the

How Should We Approach Corporate Political Activity? - Corporate/Commercial Law

NYT, Corporations, Vocal About Racial Justice, Go Quiet on Voting Rights, starts off this way: As Black Lives Matter protesters filled the streets last summer, many of the country s largest corporations expressed solidarity and pledged support for racial justice. But now, with lawmakers around the country advancing restrictive voting rights bills that would have a disproportionate impact on Black voters, corporate America has gone quiet. The author is talking about new voting laws just passed in Georgia and the reluctance, with some exceptions, of the largest corporations to say anything or do anything-beyond anodyne statements of support for voting rights in general-that might

Interest In SPACs—Special Purpose Acquisition Companies—is Booming…and So Is The Risk Of Litigation - Corporate/Commercial Law

To print this article, all you need is to be registered or login on Mondaq.com. Following these ten steps will prepare SPAC boards, sponsors, and advisors for the likely shareholder suits and potential regulatory investigations that are increasingly becoming part of the SPAC landscape. If 2020 was the year of the SPAC, 2021 may be the year of SPAC litigation. SPACs Special Purpose Acquisition Companies are publicly traded companies launched as vehicles to raise capital to acquire a target company. Often called blank-check companies, SPACs are companies in which shareholders buy shares without knowing which company the SPAC will target and

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