October 18, 2021
What started as rumblings from regulators about SPACs’ structure and management has now developed into a war on three fronts. To varying degrees, private plaintiffs, regulators at the SEC and FINRA, and Congress have all trained their sights on SPACs. Broadly, each SPAC-attack centers on the same issue: how SPACs compensate sponsors and other early investors and, relatedly, how SPACs communicate those arrangements—and potential conflicts—to later investors. This issue of the SPAC Report examines these challenges and analyzes what each could mean for the future of SPACs.