SPAC-related class-action lawsuits on the rise

New securities class-action lawsuits in federal and state courts increased only slightly overall in the first half of this year, but there was a bigger increase in the number of special purpose acquisition company-related suits, according to a report released Wednesday.

Plaintiffs filed 110 new securities class-action lawsuits in the first half, up 2.8% from 107 in the year-earlier period, according to the report from San Francisco-based Cornerstone Research Inc. and the Stanford Law School Securities Class Action Clearinghouse in Stanford, California.

There were 18 federal SPAC-related filings in this year’s first half, compared with 14 in the year-earlier period. SPAC cases are on pace to exceed 2021’s all-time high of 33.

There were eight COVID–19-related securities class-action cases filed, with half involving the health care and biotechnology subsectors, the report said.