There’s some bad news for investors who don’t like having gotten burned by SPACs, the nickname for special purpose acquisitions companies. Investors put money into a public shell that is supposed to use the proceeds to buy some amazing company to take public rather than using a traditional IPO. The presumption was that people had a chance at the types of returns beyond the dreams of avarice, as the old quote goes.
For at least one SPAC deal, the status quo has been an ongoing investor class action suit. But a decision from Judge Ronnie Abrams in the U.S. District Court in the Southern District of New York may have put the specific suit, and the more general hopes of those who claimed to have been defrauded, into the recycling bin.
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