Recent SPAC Shareholder Suits In New York State Courts: The Beginning Wave Of SPAC Litigation - Corporate/Commercial Law
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 lim...