Lawsuits & SEC Actions

The regulatory reckoning came — just years too late. Billions lost before the first enforcement action.

SCA Settlements

29

2022–2024

Total Settled

$540M

Largest Fine

$125M

Nikola / Milton

Verdict

Too Late

Damage was done

Class Action Settlements by Year

2022
6 settlements$89.0M
2023
8 settlements$145.0M
2024
15 settlements$305.5M

SEC Enforcement & Regulatory Actions

2023SEC Enforcement

Nikola / Trevor Milton

4 years prison + $125M settlement

$125M

2022SEC Enforcement

Lordstown Motors

Investigation, shareholder lawsuits

2023Auditor Settlement

Marcum LLP

Major SPAC auditor settlement

2024SEC Rulemaking

All SPACs

New enhanced disclosure rules, Investment Company Act guidance

2025SCA Settlement

Alta Mesa / Riverstone

Record $126.3M settlement — SPAC sponsor Riverstone misled investors on oil reserves

$126M

2025SCA Settlement

Grab Holdings / Altimeter Growth

$80M settlement — revenue shortfall after SPAC merger

$80M

2024SEC Enforcement

Lordstown Motors auditor (Clark Schaefer Hackett)

$80K civil penalty for audit failures

$0M

Too Little, Too Late

The SEC proposed new SPAC rules in March 2022 — after 613 SPACs had already launched in 2021. Final rules came in 2024, by which time most damage was done. $305.5M in settlements sounds large until you realize $46B+ in equity was destroyed.

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