How New SEC Rules Could Shape Future Litigation
In this episode of The SPAC Podcast, Nick Morgan, Partner at Paul Hastings LLP and co-founder of ICAN (Investor Choice Advocates Network), explains how the SEC’s new SPAC rules may influence litigation risk for sponsors and targets.
Drawing on his experience as an SEC trial counsel, Nick notes that while today’s SEC may be less aggressive than under Chair Gensler, the statute of limitations is long, sometimes six years, ten years, or even unlimited for certain claims.
That means SPAC activity happening today could still face scrutiny under a future, more activist SEC administration.Sponsors and targets shouldn’t assume a friendlier environment today eliminates long-term regulatory risk.
Connect with the Guest:
Nick Morgan – Partner, Paul Hastings LLP | Co-Founder, ICAN
LinkedIn: https://www.linkedin.com/in/nicholasrmorgan/
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Michael Blankenship LinkedIn:
https://www.linkedin.com/in/mikeblankenship/
Joshua Wilson LinkedIn:
https://www.linkedin.com/in/joshuabrucewilson/
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Disclaimer: Michael J. Blankenship is a licensed attorney and partner at Winston Taylor. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is for informational and educational purposes only and should not be considered legal, financial, or compliance advice. All views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the policies or positions of any regulatory agency, law firm, organization, or employer. Listeners should consult their own legal counsel, compliance teams, or financial advisors to ensure adherence to applicable regulations, including SEC, FINRA, and other industry-specific requirements. This podcast does not constitute a solicitation or recommendation for any financial products or services.
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Michael Blankenship:
The new SPAC rules introduce new liabilities and expand the definition of a blank check company. How do you see these changes affecting litigation for sponsors and targets?
Nick Morgan:
I don’t think the current SEC will get into SPAC minutiae the way the Gensler SEC did. But the statute of limitations is long sometimes six years, ten years, or even indefinite.
That means SPAC activity today could still be subject to scrutiny years from now, if a future SEC becomes more activist. Just because today’s environment feels more friendly doesn’t mean sponsors and targets are out of the woods.
President
Nick Morgan is a pro bono trial counsel who focuses on SEC investigations and litigation. He is the President and Founder of the Investor Choice Advocates Network (ICAN). Before founding ICAN, Morgan was a partner and office litigation chair at the law firm Paul Hastings and previously served as a Senior Trial Counsel at the SEC.