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Special Purpose Acquisition Companies (SPACs) Securities Litigation Shareholder Litigation

Hogan Lovells

Solak v. Mountain Crest Capital: fiduciary duties claims abound for SPAC sponsors and directors

Hogan Lovells on

In Solak v. Mountain Crest Capital, the Delaware Court of Chancery found that a stockholder plaintiff pleaded a viable breach of fiduciary duty claim based on an alleged failure of the board of directors of a SPAC to disclose...more

Cooley LLP

Securities Class Action Settlement Trends: Smaller Sizes and Smaller Players, According to Cornerstone Research

Cooley LLP on

Cornerstone Research, a top consulting and expert testimony firm, recently issued its annual report analyzing securities class action settlements. Cornerstone reports that, in 2024, both total settlement dollars and the...more

A&O Shearman

Colorado District Court Dismisses Putative Class Action Against Software Company For Failing To Adequately Allege Scienter Or...

A&O Shearman on

On April 4, 2025, Judge Gordon P. Gallagher of the United States District Court for the District of Colorado dismissed with prejudice a putative class action asserting claims under the Securities Act of 1933 and the...more

Woodruff Sawyer

SPAC Perspective: What Do We Do About Cayman?

Woodruff Sawyer on

Cayman continues to be a hot topic among SPACs. It comes up in almost every conversation I have about SPACs and de-SPACs. My clients are asking: Should they incorporate in the Cayman Islands and then remain there after their...more

Patterson Belknap Webb & Tyler LLP

Delaware Court Holds that SPAC Sponsor’s “Founder Shares” Created a Conflict of Interest with Public Stockholders

In 2021, there were 613 initial public offerings (“IPOs”) of Special Purpose Acquisition Companies (“SPACs”), after 248 SPACs went public in 2020 and 59 in 2019. Prior to 2021, there had not been more than 500 IPOs of any...more

Woodruff Sawyer

Six Types of SPAC Lawsuits and Counting…

Woodruff Sawyer on

It is not entirely a surprise to those watching the goings-on in the SPAC market to see the recent wave of litigation against SPACs and SPAC-related deals. After all, the avalanche of SPAC IPOs that kept all financial, legal,...more

Goodwin

Northern District of California Dismisses Shareholder Derivative Suit Concerning Lack of Diversity

Goodwin on

Northern District of California Dismisses Shareholder Derivative Suit Concerning Lack of Diversity; Delaware Court of Chancery Dismisses Stockholder Suit Against Medical Device Company for Failure to Plead Demand Futility;...more

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