SPAC Defenders Fear Professor’s Victory Means Lawsuit Gold Rush

But it’s an open question if plaintiff’s firms will bring a wave of similar cases based on Klausner’s research.

Delaware Vice Chancellor Lori Will asked the law professor if the upshot of his claim was that there had been “a massive, industrywide breach of fiduciary duty.”

Klausner told the judge that three lawsuits he’s involved in are the only similar cases he’s aware of, and he doesn’t expect the courtroom will be “flooded” with lawsuits.

But others are sounding the alarm. The lawyers defending “Gig3” argued in court that a win for Klausner will lead to a deluge of lawsuits.

Perrie Weiner, chair of Baker McKenzie’s North America securities litigation practice, put it this way: “This decision will be the full employment act for lawyers and judges in Delaware.”

Source: SPAC Defenders Fear Professor’s Victory Means Lawsuit Gold Rush