News & Analysis as of

Special Purpose Acquisition Companies (SPACs) Initial Public Offering (IPO) Financial Industry Regulatory Authority (FINRA)

Woodruff Sawyer

De-SPACs Are Ready to Take Off

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With the SPAC market heating up, we are seeing a huge uptick in activity on the SPAC IPO side. All these new SPACs will be searching for great deals in no time, so in this edition of the SPAC Notebook we dive into what is...more

Woodruff Sawyer

Guide to D&O Insurance for De-SPAC Transactions, 2023 Edition

Woodruff Sawyer on

While it’s true that the recent SPAC craze has significantly cooled, there are still more than 300 SPACs searching for a deal, according to SPAC Insider. The good news for those still searching for a deal is that there isn’t...more

Mayer Brown Free Writings + Perspectives

FINRA Publishes 2022 Report on Its Examination and Risk Monitoring Program

FINRA adds new topics for 2022 and new material to previously covered topics. Overview - On February 9, 2022, the Financial Industry Regulatory Authority, Inc. (“FINRA”) published its 2022 Report on FINRA’s...more

Skadden, Arps, Slate, Meagher & Flom LLP

Choppy Market for SPACs and PIPEs, Competition for Targets Spurs Deal Innovations

Takeaways - While the SPAC IPO and PIPE markets were challenging in 2021, the enormous amounts of capital already raised should drive merger activity in 2022. As more shareholders choose to redeem shares and potential...more

Woodruff Sawyer

Guide to D&O Insurance for SPAC IPOs (and How to Save Money on Your D&O Insurance Premium)

Woodruff Sawyer on

SPACs (special purpose acquisition companies) had a volatile year in 2021, raising more funds in the public market and doing more business combinations than ever before. After an extremely busy first quarter the pace of SPAC...more

Woodruff Sawyer

SPAC Litigation Outlook: 2021 Trends Lead to 2022 Predictions

Woodruff Sawyer on

There was no shortage of excitement and drama in the world of SPACs in 2021. The year started with IPOs of hundreds of SPACs in numbers that eclipsed everyone’s expectations. The exuberance in the SPAC market in the first...more

Morgan Lewis

The Future of SPACs: Increasing Litigation and Regulation

Morgan Lewis on

So far in 2021, we have seen more than 500 Special Purpose Acquisition Companies (SPACs) go public and raise more than $123 billion, and more than 160 of these “blank check firms” complete mergers with or acquisitions of...more

King & Spalding

SPAC Sweeps: FINRA Releases Guidance After Announcing Its Latest Series of Targeted Exams

King & Spalding on

After a period of astounding growth in the special purpose acquisition company (SPAC) market, FINRA recently joined the SEC in announcing further scrutiny of broker-dealers and their affiliates involved in SPAC offerings,...more

Proskauer - Corporate Defense and Disputes

Ex-Nikola Chairman Indicted for Securities Fraud

In April 2021, the SEC released several public statements that may have begun to cool a superheated SPAC market. FINRA soon followed suit, announcing in July 2021 a regulatory sweep aimed at SPACs.  Now, for the first time, a...more

Proskauer - Corporate Defense and Disputes

FINRA Lives Up To Its Name, Announces Regulatory Inquiries into SPACs

While 2021 has been exceptionally lucrative for SPAC sponsors – even more so than 2020’s “Year of the SPAC” – U.S. regulators appear emphatic that 2021 be the year of SPAC supervision.  In April, the SEC released guidance on...more

WilmerHale

SPAC Transaction Explosion Drives SEC Enforcement Focus

WilmerHale on

In the face of volatile markets and a global pandemic, an old capital markets vehicle has been taking the markets by storm: special purpose acquisition companies (SPACs). Although SPACs have been around for many years, the...more

White & Case LLP

How SPACs Can Manage the Risks of White Collar Scrutiny

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Notwithstanding the economic difficulties following the pandemic, 2020 saw a huge increase in initial public offerings ("IPOs") and merger activity relating to "SPACs" (Special Purpose Acquisition Companies). The number of...more

Mayer Brown Free Writings + Perspectives

IPO Underpricing & Behavioral Theories

In a law journal note titled “The Seller’s Curse and the Underwriter’s Pricing Pivot:  A Behavioral Theory of IPO Pricing,” author Patrick Corrigan considers various theories advanced to explain IPO underpricing.  Given that...more

Winstead PC

FINRA Amendments to the Anti-Spinning Rules

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FINRA Amendments to Rules 5130 and 5131 - The Financial Industry Regulatory Authority, Inc. (“FINRA”) recently effected changes to its rules regarding the purchase, sale, allocation, and distribution of initial equity...more

Proskauer Rose LLP

Changes to FINRA Rules 5130 and 5131 Go Effective – Considerations for Private Fund Managers

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On November 5, 2019, the SEC approved changes to FINRA Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and Rule 5131 (New Issue Allocations and Distributions). FINRA announced that the...more

A&O Shearman

Amended FINRA IPO Allocation Rules to Take Effect on January 1, 2020

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On July 26, 2019, FINRA announced proposed changes to FINRA Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and FINRA Rule 5131 (New Issue Allocations and Distributions) to exempt...more

Mayer Brown Free Writings + Perspectives

Changes to FINRA Rules for Equity IPOs

FINRA’s rules relating to equity IPOs, on spinning and withholding and IPO allocations, which came into effect following the dot-com bust, were recently amended. The amendments to Rule 5130, relating to restrictions on the...more

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