Will SPAC Restatement Wave Trigger Shareholder Litigation?
Law360 (June 22, 2021, 5:48 PM EDT) -- On April 12, the U.S. Securities and Exchange Commission's acting director of the Division of Corporation Finance, John Coates, and acting chief accountant, Paul Munter, issued a joint statement highlighting concerns about the accounting treatment of warrants issued in conjunction with special purpose acquisition companies, or SPACs. [1] Initial funding for a SPAC often includes warrants that have typically been classified as equity in the SPAC's financial statements. However, in their statement, Coates and Munter described certain common features of those warrants that would require them to be classified as liabilities rather than equity. They explained that if, after considering the statement,...  Stay ahead of the curve  In the legal profession, information is the key to success. You have to know whats happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. Access to case data within articles (numbers, filings, courts, nature of suit, and more.) Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc. Create custom alerts for specific article and case topics and so much more! TRY LAW360 FREE FOR SEVEN DAYS