Nelson Mullins is included among 55 of the country's top law firms who responded to recent Investment Company Act lawsuits. The lawsuits target special purpose acquisition companies (SPACs), which primarily identify and complete business combinations with one or more operating companies within a specified amount of time. The derivative lawsuits by a purported shareholder claim SPACs are investment companies under the Investment Company Act of 1940 because the revenue from their initial public offerings (IPOs) are devoted in short-term treasuries and enabling money market assets. 

Nelson Mullins is one of 55 law firms, to date, that view the assertion that SPACs are considered investment companies as without credible or legal basis and believe that a SPAC is not an investment company under the Investment Company Act of 1940. The group of firms maintains that these blank check companies are operating companies since they have to merge with a company or return money to investors.

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