Underperforming SPAC Still Subject to Federal Claims in Securities Class Action | Proskauer – Corporate Defense and Disputes

 Underperforming SPAC Still Subject to Federal Claims in Securities Class Action | Proskauer – Corporate Defense and Disputes

If 2020 was the “Year of the SPAC,” 2021 may be turning into the year of the SPAC class action. We have already followed numerous cases where recently formed SPACs have been challenged in federal court for alleged violations of federal securities laws. Although those cases are still pending, a district court recently delivered a notable ruling on a SPAC created far in the distant past, as far as SPACs are concerned: 2017.

The SPAC in question in this suit, then known as Silver Run Acquisition Corporation II, went public through an IPO and searched for an acquisition in the energy sector. Silver Run’s management highlighted Alta Mesa Holdings, LP, an oil and gas company, as a potential target.  Alta Mesa is known as an upstream oil-and-gas company which focuses on acquiring and developing unconventional hydrocarbon resources.  Such companies often have symbiotic relationships with a midstream company, which produces,…

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