SPACs Are Back!

In a recent episode of the American Bar Association's From Boardroom to Courtroom podcast, host JW Verret and I discussed the 2025 resurgence of Special Purpose Acquisition Companies (SPACs) and examined the legal, regulatory, and market forces behind their return.

After a meteoric rise and subsequent decline from 2020 to 2022, SPACs came under intense scrutiny from the U.S. Securities and Exchange Commission (SEC), culminating in several high-profile enforcement actions. These cases often involved allegations that sponsors misled investors, leading to financial losses and eroded confidence in the SPAC model.

Today’s SPACs are more cautious. They’re typically spearheaded by experienced sponsors who employ tighter deal structures and conduct more rigorous due diligence. Transactions are smaller, projections more grounded, and investor backing more robust. As I noted in the episode, “What we’re seeing now is a smarter generation of SPACs—more transparent, more cautious, and much more attuned to the realities of regulatory scrutiny.”

That said, legal risks remain. SPAC sponsors, boards, and even PIPE (private investment in public equity) participants still face significant exposure—not only from the SEC but also from shareholder litigation, particularly in Delaware courts.

SPACs are undoubtedly making a comeback, but under a new set of expectations. JW and I agree that this era is less about speculative hype and more about sustainable, well-structured deals that balance innovation with accountability.

Listen to the full episode here: From Boardroom to Courtroom: Episode 4 – SPACs Are Back!.