"Since the start of 2019, 13 SPAC-related shareholder lawsuits have been filed, according to the Stanford Law School Securities Class Action Clearinghouse. With so many blank-check companies scouting for suitable acquisition targets,
legal experts say the odds are there will be some duds and, inevitably, more litigation.
Big-name SPAC sponsors with deep pockets, like Fertitta and Handler, are especially attractive targets.
“You’re buying into the idea that this person is a good investor and that they will find a good deal,” said Robert Prongay, an attorney with Glancy Prongay & Murray LLP in Los Angeles who represents shareholders in securities lawsuits. “You have to look at the sponsors because you’re relying on their investment experience and ultimately they are accountable.”
Yahoo is now a part of Verizon Media
SPAC Litigation Likely to Surge in 2021 | JD Supra
"The allegations generally center around the same issues identified in Corp Fin’s guidance. Plaintiffs usually allege a
failure to adequately disclose to shareholders the potential conflicts of interest between management and public shareholders, as well as a failure to adequately disclose material information about the de-SPAC transaction — thus depriving public shareholders of the opportunity make an informed decision about whether to redeem their shares. After the merger is consummated, plaintiffs may amend their complaints to allege that they would have redeemed their shares for the purchase price if they had known the allegedly withheld information...
While it may be an uphill battle to persuade a court to enter a temporary or preliminary injunction to stop a de-SPAC transaction,
the mere threat of it can add uncertainty and affect the market price of the SPAC’s publicly traded shares. If the court denies injunctive relief and the deal closes, the new business combination will incur the costs and distraction of defending such lawsuits...
As a matter of defense strategy, parties to a SPAC transaction should always point out the obvious: If a
shareholder does not like the proposed de-SPAC transaction, there is an immediate and obvious remedy — simply redeem the shares and walk away. This makes any claim for damages difficult, and the avenues available to the shareholder are limited to asking for either
(1) the lost opportunity to earn growth on the value of the shares in some other investment during the period the SPAC shares were owned, or
(2) the lost value the shareholder would have realized had the de-SPAC transaction been handled differently. The former is of limited value in most cases, and the latter is rather speculative."
Id only buy if I moved back to Cali and made a certain amount tbh
