It's a pattern we often see in boom-and-bust cycles—disputes rising in the period after a wave crests, Proskauer writes.
SPAC deal volume hit an unprecedented high in 2021, but then slowed down in 2022 alongside IPOs. However, the fallout from the SPAC wave will continue to unfold this year, generating increased regulatory attention and a growing number of disputes.
Although the market has cooled, the SEC is examining historical practices by advisers who sponsored spacs during the recent SPAC boom. The SEC's 2023 exam priorities include a focus on advisers that sponsored SPACs.