With the surge in special purpose acquisition company (“SPAC”) filings in the past year, litigation is likely to follow. Bryan Gividen analyzed the first crop of SPAC-related federal securities lawsuits filed to look for any patterns or common themes that might signal what future litigation will look like.
As the wave of SPAC IPOs and de-SPAC transactions continues to build, so too has the scrutiny of these transactions from the SEC and the shareholder plaintiff’s bar.
While litigation against special purpose acquisition companies (“SPACs”) has been historically rare, the increase in SPAC offerings and transactions portends increased litigation, particularly with respect to a SPAC’s acquisition of a target company (i.e., the “de-SPACing” transaction).
As the pace of SPAC IPOs continues to set records, evolution of the economic terms has accelerated. We have seen changes to the warrant and promote structure (including “tontine” warrants), call rights motivating cashless exercise of warrants, and warrants in lieu of promote shares.
While the market witnessed a flurry of renewable energy and clean tech IPOs from 2010-2015, they have become much rarer in recent years despite markedly improved market fundamentals.
This primer provides an overview of SPACs, including a comparison to an operating company IPO, their capitalization and economic structure, governance considerations, and the post-IPO target…
V&E partner Ramey Layne breaks down Texas IPO activity over the last 18 months.