Bill Ackman’s SPAC sued after Universal Music failed to buy

August 17, 2021 | 6:18 pm

Pershing Square Twenty-One Holdings (PSTH), Special Purpose Procurement Corporation (plumber) from the investor Bill Ackman, Tuesday, in an issue that could have far-reaching implications for the entire industry.

According to The New York Times, the lawsuit includes a PSTH purchase agreement to acquire 10% of Universal Music for $4,000 million It was announced last June.

But weeks later, the hedge fund reportedly Pershing Square Holdings You will complete the process instead of SPACAnd After the US Securities and Exchange Commission raised concerns that the deal would not meet the terms of the New York Stock Exchange.

The move raised questions about whether Ackman’s SPAC was really, so The suit asks the court to declare PSTH to be an investment company and to find out whether it knowingly presented itself as SPAC to avoid legal requirements at the expense of investors.

If the lawsuit succeeds, it could make professional investors who have found SPAC attractive to worry about possible legal challenges, pacifying the market.

About 600 SPAC companies were announced last year, during which time more than $700 billion worth of merger deals were announced.

According to the newspaper, specialists have raised doubts about whether SPAC is being used as a way to avoid more difficult rules that apply to investment funds.

If some of the investment firms are regulated as investment firms, a large part of the industry could be affected because it would make it difficult for anyone in the investment field to participate in one of these firms.