Proskauer’s Asset Management Litigation partner Dorothy Murray recently authored an article on litigation risks of SPACs.
Dorothy details why the recent popularity of this latest incarnation of so-called “blank cheque” companies will inevitably lead to disputes, and the reasons are all connected to the very features that make SPACs so attractive in the first place. Like all investment vehicles, SPACs carry risks for the unwary but this is exacerbated by their particular combination of public and private capital, and unique structure, stakeholder roles and process. She identifies five key issues: conflicts, the regulatory context, the need for additional capital, ongoing governance and increasing complexity in de-SPACing.
Read the full article on ICLG: Commercial Dispute Resolution.