Guest Post: SPACs Poised to Turn a Corner in 2024: Annual Risk Update | The D&O Diary

We saw a few new types of lawsuits in 2023. The most interesting takeaway is that there were several suits against SPAC advisors.

For example, in May of 2023, a suit was filed in Delaware Chancery Court in connection with the Lottery.com SPAC deal. The lawsuit named not only SPAC directors and officers but also the financial advisor involved with the deal, Chardan Capital Markets, LLC. The lawsuit alleges that the defendants, including Chardan, breached their fiduciary duties by approving due diligence that should have revealed that the deal was not a great one.

And, as mentioned above, we are seeing an increase in the frequency of the direct-action breach of fiduciary duty suits being filed in Delaware, with several being dismissed but many proceeding forward.

Source: Guest Post: SPACs Poised to Turn a Corner in 2024: Annual Risk Update | The D&O Diary