SEC’s first target of SPACs shows Gensler’s aggressive stance (Law360)

SEC Chairman Gary Gensler has taken his initial steps toward laying the foundation for a more aggressive regulator. The SEC has moved quickly to send a strong message to the special purpose acquisition company (SPAC) market that misleading the investing public will bring consequences. In lead comments, Amy Lynch, FrontLine’s Founder and President, states that the case against the SPAC Stable Road Acquisition demonstrates how the lack of due diligence can lead to transaction fraud and warned that the SEC would likely bring more cases of a similar nature. After several months of regulatory guidance on SPACs, concerns identified by the SEC appear to have been reviewed at its highest levels and in atypical fashion, Chairman Gensler himself appeared in the Enforcement case announcement. See Law360 (subscription required), “SEC, Gensler Put SPAC Players On Notice With Latest Action“