SPACs

SSEK Law Firm Investigates Claims of Investor Losses Involving Grab Holdings, Ltd.

Published on: April 19, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Investors Involved in Biggest SPAC Merger File Class Action Securities Lawsuit

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is looking into claims of losses by investors of Grab Holdings, Ltd. (NASDAQ: GRAB). This firm became a public entity on December 1, 2021, via the largest Special Purpose Acquisition Company (SPAC) merger to date with Altimeter Growth Corp. The latter is a blank-check firm run by Altimeter Capital CEO and founder Brad Gerstner.

Grab Holdings, the largest ride-hailing, and delivery company in Southeast Asia has experienced the opposite of growth. Its shares plunged over 20% from $13.06/share to $8.75 at the end of the first day of trading. On March 3, 2022, Grab announced that fourth-quarter revenues saw a 44% drop from the third quarter. That’s a $1.1B loss.

FINRA Probes Broker-Dealers’ Activities Related to SPACs

Published on: October 19, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Popular With Retail Investors, Shell Companies That Raise Capital Through Own IPOs Can Be Risky

The Financial Industry Regulatory Authority (FINRA) has started a thorough examination of the activities of brokerage firms in relation to special purpose acquisition companies (SPACs). These shell companies raise funds through their own IPOs and have up to two years to select and acquire a private company that will go public via merger. They are popular among retail investors seeking to make money from private companies whose shares they otherwise wouldn’t be able to buy because they don’t satisfy certain wealth or income thresholds.

However, SPACs have come under increasing scrutiny from FINRA in the wake of their growing popularity, because of the risks and potential harm they can pose for retail investors. Our skilled SPAC investment attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are investigating claims of losses by investors whose brokerage firm unsuitably recommended a special purpose acquisition vehicle or did not fully apprise them of the risks involved. Contact SSEK Law Firm at (800) 259-9010 today

SEC Accuses SPAC Stable Road Acquisition Company and Others of Misleading Investors

Published on: August 27, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Penalties of Over $8M Imposed on Stable Road Acquisition Company and Others

The Securities and Exchange Commission (SEC) filed fraud charges against special purpose acquisition company (SPAC) Stable Road Acquisition Company and its CEO Brian Kabot. The company’s sponsor SRC-NI, proposed merger target Momentus Inc., and the latter’s ex-CEO Mikhail Kokorich are also facing charges.

The regulator is accusing them of making misleading claims to investors about the target’s technology and national security risks involving Kokorich. While the Commission’s lawsuit against Kokorich will continue to move forward, the other parties reached settlements with the regulator. This included paying $8M in penalties.

Why SPACs Can Be A Poor Investment Choice For Retail Investors

Published on: March 15, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Special Purpose Acquisition Companies Can Lead To Losses, High Fees

If you are an investor whose broker recommended that you invest in a special purpose acquisition company (SPAC) and you have suffered losses on your investment, you should contact our investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com).

SPACs grew even more popular in 2020 in the wake of COVID-19. Although they can be profitable for those who start one, they’ve also proven to be risky and can result in losses for investors. Contact SSEK Law Firm today to request your free, no-obligation consultation.