Section 1: Overview of SPAC
- What is SPAC? How does it work? Which parties are involved in a SPAC?
- Why do companies use SPACs?
- What is De-SPAC?
- What are the risks of investing in a SPAC?
- How is SPAC different from Initial Public Offering (IPO)?
- Why a firm might still choose an IPO over a SPAC?
- Why are SPACs subject to securities class action lawsuits? Who files these lawsuits?
Section 2: Analysis of Selected SPAC Litigation Cases
- Case Selection: Click on Filings Database tab:
- Click on Current Trends. Then click on SPACs. There are 117 filings.
- Select 8 (eight) SPAC litigation cases from 117 SPACs cases (cases are approximately 1 page long). Complete this form to submit your selected cases. Once selected, other students cannot select that case any longer. Complete this shared Google sheet: .
Section 3: Analysis
3.1. Analyze the chosen cases using the following framework:
- What company did the SPAC merge with, and why was it chosen?
- What specific fraudulent actions were the SPAC or its merged company accused of?
- Were there misstatements in financial projections, technical capabilities, or other key areas?
- How was the information withheld or misrepresented to the public?
- Who were the plaintiffs (who files) in these lawsuits?
- How did the legal actions progress, and what evidence was presented?
- How did the lawsuit or allegations affect the SPACs or companys stock price?
- What penalties, settlements, or fines were imposed on the company or individuals?
3.2. Analyze the overall trend based on 117 SPAC litigation cases and comment (based on 117 cases) on the following:
- The most frequent allegation type
- Who gets sued and who sues
- The most frequent sector
- Outcomes (% dismissed/settled/pending)
Section 4: Recommendations and Preventive Measures
- Based on findings, students propose:
- What could have been done to prevent the fraudulent activities?
- How do lawsuits like these shape investor confidence in SPACs?
- What changes in corporate governance or disclosure practices are needed?
Section 5: References
You should list all references used, to complete the paper, including website links (provide exact links) and academic journal articles. Visit Google Scholar to find academic articles: . Students are required to use the following as references:
- SEC filings.
- Scholarly articles.
- Media reports.
Additional Instructions:
- All chosen cases must be listed in the shared Google sheet no later than March 3rd, 2026.
- Ensure your deliverables are submitted to Canvas by the due date.
- All papers must be typed and written in a 12-point, Times New Roman font.
- Students are strongly encouraged to submit papers free from grammatical errors. The paper must reflect the student’s own work. Plagiarism of any kind will result in immediate academic penalties.
Deadlines
- Selection of cases (due on March 03, 2026): 5 points
- Submission of deliverable 2 (due on April 29, 2026): 15 points
- Written report: deliverable 2
- First Identified Complaint (FIC) Filings from the database
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