Webinar Series Recording: Part 2 - SPACs: What They Are, Why They Were Popular, and the Issues They Now Face

SPAC transactions saw a big growth in popularity in late 2020 and early 2021 and were viewed by some as an easier way to raise IPO money.  While the SPAC-craze slowed down in the second half of 2021 and early 2022, there remain over 600 SPACs that went public in 2020 and 2021 that are currently seeking merger partners. 

The SPAC process involves a number of public disclosures, each of which is subject to SEC scrutiny and exposes the company to securities litigation risk.  The de-SPAC transaction, which involves disclosures regarding the target’s business operations, financial projections and historic operations, is the most fraught with risk in the SPAC life-cycle from a securities litigation perspective.  Thus, as the 600+ SPACs that went public in 2020 and 2021 near the deadline to close a transaction, we expect to see an increase in SPAC litigation. 

In Part 2 of our webinar series, our panel of securities litigators discuss recent Delaware decisions relating to SPAC litigation, SEC guidance, and proposed new rules on SPAC transactions. To view the recording of Part 1 of the series, click here.

Speakers

Greg Markel, Partner, Seyfarth Shaw

Daphne Morduchowitz, Partner, Seyfarth Shaw

Matthew Catalano, Associate, Seyfarth Shaw