Corvex Management has agreed to pay $1 million to settle a Securities and Exchange Commission complaint related to the activities of three spacs co-sponsored by the hedge fund. The regulator accused the activist hedge fund firm of failing to disclose conflicts of interest regarding its personnel's ownership of sponsors controlling SPACs into which Corvex advised its clients to invest.
Without admitting or denying the findings, Corvex agreed to a cease-and-desist order, a censure, and the $1 million civil penalty to settle the charges.
One of the SPACs, CM life sciences III, was hit with a class action suit in October 2021 related to its reverse merger with EQRx. Read more.
Source: Corvex Settles with SEC Over SPAC Activities