Market Capitalization (Millions $) |
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Shares
Outstanding (Millions) |
25 |
Employees |
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Revenues (TTM) (Millions $) |
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Net Income (TTM) (Millions $) |
-6 |
Cash Flow (TTM) (Millions $) |
0 |
Capital Exp. (TTM) (Millions $) |
0 |
Cf Acquisition Corp V
Cf Acquisition Corp V is a case that was decided by the Supreme Court of the United States in 2021. The case is an important one because it clarifies the scope of the Securities Act of 1933, specifically as it relates to liability for statements made in connection with a merger or acquisition.
The case involved a special purpose acquisition company (SPAC) called CF Acquisition Corp. CF Acquisition Corp was formed in 2020 for the purpose of merging with a privately held company called AEye Inc, which was developing autonomous vehicle technology. To facilitate the merger, CF Acquisition Corp filed a registration statement with the Securities and Exchange Commission (SEC), which included a proxy statement that solicited votes from CF Acquisition Corp's shareholders. The proxy statement contained projections about AEye's future performance, revenue, and market share.
After the merger was completed, AEye's stock price plunged, and shareholders of CF Acquisition Corp sued, claiming that the projections in the proxy statement were false and misleading. They argued that CF Acquisition Corp should be held liable for the statements in the proxy statement, even though they were made by AEye and its advisors.
The Supreme Court ultimately ruled in favor of CF Acquisition Corp. The Court held that under the Securities Act of 1933, liability for false or misleading statements must be tied to the party who actually made the statement. In other words, CF Acquisition Corp could not be held liable for statements made by AEye or its advisors simply because those statements were included in the proxy statement for the merger.
The decision in CF Acquisition Corp V is significant because it limits the potential liability of companies that engage in mergers and acquisitions. It clarifies that companies are only liable for statements that they themselves make in connection with a merger or acquisition, rather than statements made by the target company or its advisors. This ruling may also have implications for the use of SPACs in mergers and acquisitions, as SPACs often rely heavily on projections and other forward-looking statements in their registration materials.
Company Address: 110 East 59th Street New York 10022 NY
Company Phone Number: 938-5000 Stock Exchange / Ticker: NASDAQ CFV
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