SPAC Transaction Challengers Face Uphill Battle

Recent decisions by the Delaware Court of Chancery demonstrate that when a special purpose acquisition company (SPAC) transaction and the disclosures surrounding it are challenged, defendants may face an uphill battle to prevail on a motion to dismiss, especially where breach of fiduciary duty claims have been asserted.

7 minute read October 01, 2023 at 12:07 AM
By
Jay A. Dubow, Joanna J. Cline and Erica H. Dressler
SPAC Transaction Challengers Face Uphill Battle

Special purpose acquisition companies, or SPACs, have grown in popularity over the past decade, and as a result, more than 30% of all transactions that took companies public in 2021 involved a de-SPAC merger.

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