SPAC-related disputes have thus far focused on alleged conflicts of interest and the accuracy of disclosures regarding targets' business prospects, and those issues are likely to continue to play a leading role as more motions to dismiss are decided, note lawyers with Jones Day, writing in JD Supra.
While only a few decisions have been issued by the Delaware Court of Chancery so far, the standard of review applied in those cases is likely to have a significant impact on outcomes if adopted in other cases.
Unlike the Delaware lawsuits, SPAC-related cases in federal court usually involve claims under Section 10(b) or 14(a) of the Exchange Act, although state law claims may also be asserted. The timing of the alleged misstatements and the roles of the individual defendants are important issues that may influence whether such claims survive at the pleading stage. Read more.