Jeremy Bressman Explains What’s Next for SPACs to Family Wealth Report
June 29, 2021
Publication: Family Wealth Report
After experiencing a boom in the United States, special purpose acquisition companies (SPACs) are now in a bit of a lull as regulators, including the U.S. Securities and Exchange Commission, increase scrutiny. Kobre & Kim’s Jeremy Bressman, who handles complex cross-border asset recovery, regulatory and investigation matters, analyzed what comes next for SPACs when he sat down with Family Wealth Report.
“As the market begins to soften a bit you are going to have SPACs set up to engage in transactions where they have an incentive to find a target to acquire,” Mr. Bressman said, adding that, “[t]here may be a lot of SPACS that settle on targets that are not the best.” He emphasized that those involved in SPACs must be prepared for litigation and ensure they have evidence showing they took all necessary steps to deploy capital with as much diligence as possible.
Mr. Bressman pointed to some of the recent SPAC disputes he was involved in to highlight the importance of vigilance, including representing executives of an intelligence communications company subject to civil lawsuits and regulatory enforcement actions related to claims they defrauded shareholders of a U.S. SPAC.