SEC’s SPAC Rules Set to Limit Rosy Projections That Fueled Mania
Herrick litigation partner Shivani Poddar was quoted in Bloomberg Law discussing the US Securities and Exchange Commission’s ("SEC") newest disclosure requirements for Special Purpose Acquisition Companies ("SPACs"), and how these rules could impact this industry moving forward.
The article highlighted that prior to the SEC implementing these new disclosures, SPACs were able to overstate future projections with little risk of legal implications. “These rules are the first step in the SEC’s tightening of the reins for SPACs,” said Shivani. “The parties involved in SPACs will assume more liability than ever before with these increased disclosure requirements.”
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