SPAC Frenzy Worries Some Wall Street Investors: Report

The SPAC boom has hit a major roadblock in the form of faulty disclosures, the law firm of Schiffer Hicks Johnson writes in an article for JDSupra. The recent deluge of SPAC litigation has mainly focused on these disclosures — specifically, disclosures made during the SPAC’s IPO as well as the de-SPAC transaction.

Anxiety is growing that the wellspring of SPACs, a 2020s echo of the dot-com mania of the 1990s, is bumping up against the limits of both Wall Street and Washington, Bloomberg reports.

ION Acquisition, led by co-CEOs Gilad Shany and Avrom Gilbert, and Chairman Jonathan Kolber, is among the candidates vying to merge with Innovid.

The hedge fund manager, who remains best-known for predicting the collapse of energy group Enron, accused some who have taken companies public via a SPAC of “playing fast and loose with their projections” in an effort to entice retail investors.