In just a few days, when the time comes to tot up the 2021 securities class action lawsuit filings and to mark out the key 2021 filing trends, one of the key stories is going to be the surge during the year in the number of SPAC-related securities suit filings. In the latest example of this 2021 filing trend, late last week a plaintiff shareholder filed a securities class action lawsuit against a post-SPAC-merger fintech company. The individuals named as defendants in the lawsuit include two former officers of the SPAC. The new lawsuit has many of the features that have characterized the SPAC-related lawsuits that have been filed this year.
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Shareholders Sue Post-SPAC-Merger Biotech Firm After Short Seller Attack
In the surge of SPAC-related litigation that has been filed this year, one of the distinctive features of the filings has been that many of the lawsuits have followed shortly after a short seller published a report critical of the defendant company. In the latest example of this phenomenon, a shareholder has filed a securities class action lawsuit against biotech firm Ginkgo Bioworks Holdings, which merged with a SPAC in September 2021, after the company’s share price declined following the publication of a negative short seller report. As discussed below, this new lawsuit has several other features in common with the SPAC-related securities lawsuits filed this year. A copy of the November 18, 2021 complaint against Ginkgo Bioworks can be found here.
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Post-SPAC-Merger Baby Product Company Hit with SPAC-Related Securities Suit
One of the most substantial securities litigation phenomena so far in 2021 has been the rising tide of securities litigation relating to SPACs and SPAC-acquired companies. In the latest example of this type of lawsuit, a plaintiff shareholder has filed a securities class action complaint against Owlet, Inc., a company that sells baby health products and that was in July 2021 merged with a SPAC. The defendants named in the lawsuit include not only officers of Owlet itself but also include certain former directors and officers of the SPAC. A copy of the November 17, 2021 complaint against Owlet can be found here.
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Deep-Sea Mining Company Hit with SPAC-Related Securities Suit
A Canadian-based deep-sea mining company is the latest firm to be hit with a SPAC-related securities class action lawsuit. The company, which plans to mine the seabed for materials to be used in electric vehicles batteries, merged with a SPAC in September 2021. The company’s share price recently declined following news reports and a short-seller report questioning the company’s financing, licensing, and its claimed sustainability credentials. A copy of the October 28, 2021 complaint can be found here.
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Fuel Cell Vehicle Company Hit With SPAC-Related Securities Suit Following Short Seller Report
Hyzon Motors, a hydrogen fuel cell vehicle development company that merged with a SPAC in July 2021 and that was the subject of a recent scathing short seller report, has been hit with a securities class action lawsuit. The defendants in the lawsuit include two former officers of the SPAC with which Hyzon merged. A copy of the September 30, 2021 complaint filed against Hyzon can be found here.
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AgTech Company Hit with SPAC-Related Securities Lawsuit
In the latest SPAC-related securities class action lawsuit filing, a plaintiff shareholder has initiated a securities suit against Agtech company AppHarvest, alleging material misrepresentations after the company recently experienced a stock price drop. A copy of the plaintiff’s September 24, 2021 securities class action lawsuit complaint can be found here.
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Webinar: SPAC and De-SPAC Litigation, Regulation, and Investigations
On September 28, 2021, I will be participating on a panel as part of a webinar being put on by Sandpiper Partners LLC entitled “SPACs, De-SPACs, and SPAC Litigation.” The webinar, which is free, will run from 10:00 am to 1:00 p.m. EDT. I will be a panelist in the session entitled “Securities and Corporate