Laura Oswell, Jacob Croke and Matthew Strand Author Article on Delaware Chancery Court's Skepticism of De-SPAC Deals for Law360

January 18, 2023

Laura Oswell, Jacob Croke and Matthew Strand authored an article, “Chancery Ruling Reiterates Its Skepticism Of De-SPAC Deals,” in Law360. The authors discuss the Delaware Chancery Court’s recent decision in Delman v. GigAcquisitions3, which addressed the fiduciary duties of SPAC directors.
 
Following its reasoning in a previous decision involving a SPAC, In re: MultiPlan Stockholders Litigation, the court indicated that robust disclosures will not necessarily entitle SPAC directors to the protection of business judgment review. The authors note that the decision is a further indication of the Chancery Court’s inherent skepticism of de-SPAC transactions and will likely subject many de-SPAC transactions to entire fairness review, which places the burden of persuasion on defendants at trial. This may make it more difficult to resolve shareholder litigation before discovery.
 
Read “Chancery Ruling Reiterates Its Skepticism Of De-SPAC Deals.”