For the past several months, many pundits in both the legal industry and securities market have been predicting an uptick in the incidence of litigation related to SPACs, Reuters reports.
SPACs’ recent meteoric rise in popularity has been accompanied by speculation that litigation will soon follow.
According to a variety of mid-year assessments, these predictions have — not surprisingly — come true. According to the “Securities Class Action Filings 2021 Midyear Assessment” conducted by Cornerstone Research, SPAC-related class actions saw a spike in the first half of 2021. In fact, there were twice the number of federal SPAC class action filings in the first half of 2021 as there were in the entirety of 2020. Read more.