In a federal court ruling from earlier this year, Vogel v. Boris, the New York federal court refused to toss out a claim by an LLC member, Vogel, against his two other business partners, alleging that they violated a restrictive covenant in the LLC’s operating agreement prohibiting any member from forming a new SPAC
As reported here in Law360 [$$], Sustainable Opportunities Acquisition Corp. — a SPAC planning to mine the seafloor for metals to be used in electric vehicle batteries — has sued two potential investors for failing to fulfill their purported obligation to provide funding under a PIPE deal. The investors had signed subscription agreements committing them
In this timely academic piece by Maria Lucia Passador, “In Vogue Again: The Re-Rise of SPACs in the IPO Market,” the case is made that SPACs in the US will continue their growth in the capital markets and should “update and evolve for good” despite the recent increase in litigation and resultant increase in
As reported here in Bloomberg, after launching a record-size $4 billion SPAC last summer, Bill Ackman’s Pershing Square Tontine Holdings is unwinding and returning its invested funds back to shareholders.
In June, Pershing Square announced it was buying a 10% stake in Universal Music Group, surprising investors who had been expecting a classic SPAC
As Alison Frankel at Reuters observed, of the 60+ lawsuits filed in New York state court in the first half of this year against SPAC directors for inadequate disclosures, most of them typically settled after the initial complaint was filed, without advancing their claims that the SPAC boards violated their duty of disclosure by
Given the unprecedented surge in SPAC activity in the first half of 2021, SEC Acting Director John Coates has expressed concerned about risks ranging from fees, conflicts and sponsor compensation, to the sheer amount of capital pouring into the SPAC market. Naturally, with this surge has come “unprecedented scrutiny,” and the SEC has been focusing
Welcome to our blog’s new SPAC Corner, as we kick-off an ongoing series of posts dedicated to this bourgeoning field of investor litigation.
A natural starting point for our focus on SPACs is to highlight the upcoming September 9 meeting of the SEC’s Investor Advisory Committee (IAC), at which the IAC will be discussing two