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    Home /  Insights /  Memos and Newsletters /  Memo
    S&C Memos

    Delaware Court of Chancery Issues Its First Fiduciary Duty Opinion on SPACs

    “Misalignment of Interests” Between Sponsor and Stockholders a Source of Legal Risk for Directors of SPACs

    January 26, 2022 | min read |
    • Related Practices

    On January 3, 2021, in In re MultiPlan Corp. Stockholders Litigation, the Delaware Court of Chancery denied a motion to dismiss a complaint brought by SPAC stockholders against the SPAC, its sponsor and its directors. Plaintiffs alleged that defendants breached their fiduciary duties in connection with the de-SPAC transaction by issuing a false and misleading proxy statement that failed to disclose the impending loss of the target’s largest customer, which led to a significant drop in stock price following the de-SPAC transaction.

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    • Capital Markets
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