Katten Capital Markets Attorneys Speak Out After Releasing Joint Statement Alongside Over 60 Leading Law Firms – Corporate/Commercial Law

 Katten Capital Markets Attorneys Speak Out After Releasing Joint Statement Alongside Over 60 Leading Law Firms – Corporate/Commercial Law

On August 19, hedge fund magnate Bill Ackman released a letter
to shareholders announcing plans to potentially unwind the SPAC he
launched last year, Pershing Square Tontine Holdings, Ltd.
(Tontine), in response to a shareholder derivative lawsuit that
claimed Tontine was operating as an unregistered investment company
in violation of the Investment Company Act of 1940, as amended (the
Investment Company Act). Ackman’s $4 billion investment vehicle
was launched in June 2020 and remains the largest-ever SPAC raise
by dollar size, but had trouble finding an acquisition target to
match its substantial war chest.1 Subsequent to the action
against Tontine, several other similar suits were filed against
additional SPAC vehicles, each making similar claims. In response
to the lawsuits and in an unprecedented development, Katten and
more than 60 other leading law firms released a joint statement
condemning their…

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