HAVE YOU BEEN DAMAGED BY A SPAC INVESTMENT?
What is a SPAC?
SPACs, or Special Purpose Acquisition Companies, are the latest way to bring private companies public. They are also rife with opportunities to defraud investors. Basically, a SPAC is a shell company designed to hunt for private companies to acquire. SPACs raise their funds from Initial Public Offerings (IPOs). Then, flush with cash, they target a company to buy. The acquisition is done by merging the private company into the SPAC itself. This kind of PacMan swallowing of a target acquisition provides an easy avenue to circumvent protections for investors.
SPAC Acquisitions Circumvent Key Investor Protections
Conflicts of Interest
The absence of these offering related investor protections in a SPAC merger by which a private company becomes public has led to mergers driven by conflicts of interest and losses for public investors due to many SPAC transactions.
These conflicts of interest include: