On July 13, 2021, the US Securities and Exchange Commission (“SEC”) announced charges against a special purpose acquisition company (“SPAC”), the proposed merger target company in the space transportation industry, each company’s CEO, and the SPAC’s sponsor. The charges were announced in connection with misleading statements made by the SPAC and target company to its investors.

This Legal Update discusses the SEC’s issuance of an Order Instituting Cease-And-Desist Proceedings against the related parties and the Order’s broader implications.