SPAC Strikeforce Newsletter Volume IV

May 18, 2022

Times, they are a-changin’ in SPAC-world, and in this latest issue of the SPAC Strikeforce Newsletter, we tackle several recent developments in SPACs and their regulation. After months of will-they or won’t-they guessing, the SEC released its long-awaited proposals for SPACs on March 30, 2022, and also has noted concerns about generally accepted accounting principles for SPACs. Those pushing for closer regulation of SPACs are also making headway in court: a group of SPAC investors recruited from the website Reddit filed an amicus brief in one case in the Southern District of New York, underscoring the overlap between SPACs and the gamification of the market and its impact on retail investors. Meanwhile, the Delaware Court of Chancery recently issued a decision suggesting that courts will seriously consider claims that a SPAC’s sponsors are conflicted and violated disclosure obligations, opening the door to more aggressive litigation. Finally, SPACs are going global, with the United Arab Emirates, among other places, opening up domestic markets to SPACs. With all this change afoot, the future for SPACs is uncertain and it remains more important than ever for those involved in SPACs to stay closely informed.

SPAC Strikeforce Newsletter Volume IV (pdf | 333.91 KB)