On July 13, 2021, the Securities and Exchange Commission announced a major enforcement action related to a proposed merger between a special purpose acquisition company and a privately held target company.
This followed numerous warnings by the SEC staff over several months of enhanced scrutiny of such transactions under the federal securities laws. The respondents, except for the Target’s CEO, settled the action by collectively agreeing to civil penalties of approximately $8 million and to certain equitable relief described below.
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