Special purpose acquisition companies (SPACs) are created by sponsors who raise capital in an initial public offering (IPO) and use those proceeds to acquire a private company and take it public. And while SPACs have grown in popularity over the past year, they are not without certain legal risks. There is a potential for lawsuits […]
For the longest time, initial public offerings were the “go-to” choice in public offerings. Recently, however, startups have discovered a more manageable alternative to traditional IPOs by way of special purpose acquisition companies, or SPACs. Here are four reasons why more private companies are electing to go with SPACs versus the IPO route. 1. A […]
According to Bloomberg research data, the recent flood of special purpose acquisition companies (SPACs) has propelled private businesses onto U.S. stock markets, allowing them to avoid the complexities of traditional initial public offerings (IPOs). However, as with any type of merger, it is important to consider all the potential risks and outcomes, and to plan […]
A recent Willis Towers Watson (WTW) D&O Marketplace Survey highlights how our current economic environment (due in part to COVID-19) continues to impact an already-challenged directors and officers (D&O) liability insurance market. Here, we’ll look at key takeaways from the survey as they relate to D&O trends, and how this environment is fueling underwriter concerns […]
In part one of this article, we reviewed common issues associated with special purpose acquisition company (SPAC) litigation risks. Here, in part two, we’ll look at the three main types of directors and officers (D&O) liability insurance programs that typically respond to SPAC-related litigation claims, as well as information regarding policy coverages and limits. Types […]
Adding tail insurance to a D&O policy is an often-overlooked coverage for businesses. When it comes to mergers and acquisitions, tail coverage becomes especially critical in extending protection for claims that are reported after the current D&O insurance policy ends and during the extended reporting period.
Tremendous growth in the number of Special Purpose Acquisition Companies (SPACs) has increased demand for Directors & Officers (D&O) insurance.
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