Plaintiff Files Derivative Lawsuits In Southern District Of New York Asserting That Special Purpose Acquisition Companies Are Investment Companies Under The Investment Company Act Of 1940
08/31/2021
On August 17, 2021 and August 20, 2021, a purported shareholder of certain special purpose acquisition companies (“SPACs”) filed three derivative lawsuits in the United States District Court for the Southern District of New York asserting that the SPACs are investment companies under the Investment Company Act of 1940, because proceeds from their initial public offerings are invested in short-term treasuries and qualifying money market funds. Assad v. Pershing Square Tontine Holdings, Ltd., No. 21-cv-6907 (S.D.N.Y Aug. 17, 2021); Assad v. E.Merge Technology Acquisition Corp., No. 21-cv-7072 (S.D.N.Y Aug. 20, 2021); Assad v. GO Acquisition Corp., No. 21-cv-7076 (S.D.N.Y Aug. 20, 2021).
