Recent statements by regulators and new court decisions signal continued scrutiny of SPACs and operating companies going public through de-SPAC mergers.

Key Points:

..The SEC has indicated that it will continue its focus on SPACs, including by proposing rules to further regulate SPACs this spring, which could lead to increased SEC enforcement activity involving SPACs and de-SPAC’ed public companies.

..Federal prosecutors, under directives from US Deputy Attorney General Lisa Monaco to invigorate efforts to combat corporate crime, are likely to increase their focus on SPAC-related securities matters, including on issues involving insider trading and investor fraud.

..Private securities class action lawsuits targeting SPACs, SPAC directors, and operating company executives are increasingly common in light of regulatory scrutiny and a proliferation of short seller attacks.

..Key court decisions are expected in early 2022 that may clarify or limit the application of MultiPlan’s entire fairness standard of review and resolve questions involving the application of the Investment Company Act of 1940 to certain SPACs.