We previously noted that SEC Chair Gary Gensler suggested the SEC would adopt new rules governing SPACs because, in his view, SPACs are very similar to initial public offerings but lack protections available to traditional IPO investors. And now, the SEC has taken concrete steps to treat “like cases alike”
Treating “Like for Like”: SPAC Disclosure, Marketing and Gatekeeping in 2022
We reported last year that unprecedented SPAC deal volume signaled an increased risk for disputes given their unique structure, including risks associated with disclosure requirements, material non-public information, valuation, and conflicts of interest. Our assessment proved prescient, as the SEC began to flex its enforcement muscles vis-à-vis SPACs as the year progressed, and took specific notice of potential asymmetries between SPACs and traditional IPOs that may form the basis for disputes in 2022.
New in the World of SPACs: Arks, Sharks and SPARCs
Special purpose acquisition companies (SPACs) have been one of the success stories of recent years. They have attracted huge volumes of investment as professional and retail parties invest through an initial public offering (IPO) in a ‘cash shell’ company with a mandate to find a suitable unlisted acquisition target. The
Space SPAC Draws SEC Enforcement Action for Allegedly Misleading Disclosures and Due Diligence Failures
As one of the first of an expected series of potential enforcement actions, the SEC has brought an enforcement action against a SPAC and its major participants, highlighting enhanced regulatory scrutiny of SPACs and underscoring the importance of following appropriate diligence and other practices in the de-SPAC process. Given the
SPACs: Sure, Proceedings Are Coming
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