Delaware Court of Chancery, left, on The Circle in Georgetown, Delaware. Credit: Antony-22 via Wikimedia Commons Delaware Courts Rejecting SPAC Defenses
One year into this litigation boom, plaintiffs continue to sue SPAC management, founders, and sponsors for various alleged breaches of fiduciary duties. A recent decision—Delman v. GigAcquisitions3—could accelerate that trend and portend a narrowing of available defenses.
May 15, 2023 at 12:30 PM
9 minute read
Special Sections
Litigation involving special purpose acquisition companies (SPACs) continues to heat up in Delaware. One year into this litigation boom, plaintiffs continue to sue SPAC management, founders, and sponsors for various alleged breaches of fiduciary duties. A recent decision—Delman v. GigAcquisitions3, 2023 WL 29325, (Del. Ch. Jan. 4, 2023)—could accelerate that trend and portend a narrowing of available defenses.
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