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There were 166 de-SPAC transactions between 2019and July 15, 2021, and 23 of those transactions resulted in privatesecurities litigation.14 SPAC-related litigation can also involve unique exposures. Conclusion The full implications to the D&O market caused by the suddenincrease in SPAC popularity by investors, target companies,and, of course, securities litigation plaintiffs are yet to be seen.The insurance coverage issues raised by the unique process ofthe SPAC are largely untested. SPACs, or special purpose acquisition companies, haveexploded in popularity in recent years as an alternative tothe traditional initial public offering (IPO).These "blankcheck" companies, which raise money through an IPO for thespecific purpose of using that money to later acquire an existing,privately held business, are viewed as reducing some of the costsof going public and allowing private companies quicker access topublic markets. Because a de-SPAC transaction is anticipated at theoutset of a SPAC, tail coverage is typically negotiated with theinitial SPAC D&O policy. [Extracted from the article]