On January 4, the Delaware Chancery Court issued a second decision suggesting that SPAC sponsors and directors proceed with care in connection with de-SPAC transactions (and potentially future SPAC formation). As a result of the recent decision in Delman v. Gigacquisitions3, LLC, et al. and the prior opinion in In re multiplan Corp. Stockholders Litig., sponsors and directors of SPACs should consider if their policies and procedures around proxy statement disclosures, diligence, board discussions, financial valuations, capital raising and de-SPAC transactions could be potentially subject to criticism after the fact if litigation arises.
Source: Delaware Chancery Court Issues Delman Decision Potentially Increasing Scrutiny of the Actions of SPAC Sponsors and Boards