SPAC Litigation: Current State and Beyond (Volume 55, Number 4—February 23, 2022)
Author: Jenny Hochenberg.; Justin C. Clarke.
Source: Volume 55, Number 04, February 15 2022 , pp.33-47(15)
Abstract:
In this article the authors discuss the structural features and disclosure-related issues arising in SPAC transactions and in SPAC litigation. They begin with a discussion of SPAC structures and potential conflicts. They then turn to Delaware’s approach to SPAC litigation, the SEC’s approach to SPAC disclosures and conflict issues, and private plaintiffs’ securities law actions to recover losses in SPAC investments. At two points they provide key takeaways and observations regarding this litigation. They close with notes on the new frontiers for SPAC trends.Keywords: SPAC Structure and Potential Conflicts; Multiplan Litigation and Application of Entire Fairness; Anti-Fraud Enforcement; Potential Causes of Action; SEC v. Hurgin; Stable Road
Affiliations:
1: Cravath, Swaine & Moore LLP; 2: Cravath, Swaine & Moore LLP.