SPAC Federal Securities Litigation Analysis – US Market Advisors

While SPAC offerings may have cooled, the litigation has yet to heat up

The following report provides an analysis of the exponential increase in SPAC IPOs, and the litigation that has followed, during the period of between January 2019 and April 2022 (Relevant Period). Highlights from our findings include:

  • Newly proposed regulation may have paused SPAC IPOs, but the litigation continues.
  • 977 SPAC IPOs took place during the Relevant Period, with the bulk of those occurring in 2021 (613).
  • 61 federal securities actions were filed by investors during the Relevant Period, with the bulk of those occurring in 2021 (33).
  • Over 85% of the actions remain active and are expected to take several more years to resolve.

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Source: SPAC Federal Securities Litigation Analysis – US Market Advisors