Viewed as involving fewer regulatory hurdles than an IPO, SPACs became the most popular way to take a company public in 2020, and deal volume continued to rise in 2021. This increase in popularity brings increased attention from lawmakers and an attendant increase in litigation risk—for sponsors, officers, and directors of the SPAC, sellers in the de-SPAC transaction, and officers and directors of the post-combination entity

Originally Published in "SPAC Procedural Issues & Risks," Bloomberg Law - August 2021.