By Lene Powell, J.D.
In a group of high-profile cases that could cause big problems for SPACs, Robert Jackson Jr., a former SEC commissioner and current NYU law professor, in conjunction with several firms, alleges that three large SPACs are actually unregistered investment companies that are paying illegal compensation under the Investment Company Act (ICA).
It is a novel claim that could potentially affect a large number of SPACs. However, there is formidable opposition. 63 top law firms have signed an unusual joint statement opposing the litigation.
Senior legal analyst Lene Powell explains the legal claims and what’s at stake.
Read the piece here: Are SPACs investment companies? New lawsuits pose challenge.