WHY: Hittelman Strunk Law Firm, a securities law firm, announces an investigation of potential securities claims on behalf of shareholders of Energy Vault Holdings, Inc. f/k/a Novus Capital Corporation II (NYSE: NRGV, NRGV-WT) resulting from allegations that Energy Vault Holdings, Inc. may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased Energy Vault Holdings, Inc. securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
The Hittelman Strunk Law Firm is preparing a class action seeking recovery of investor losses.
WHAT IS THIS ABOUT: SPACs, or special purpose acquisition companies, are commonly known as “blank check” shell companies. SPACs provide an alternative to the traditional IPO process and serve the primary purpose of raising investor proceeds to eventually acquire a private company.
While SPAC investors have the potential to realize significant gains, they are also much more vulnerable to market volatility and other types of fraud.
According to the Wall Street Journal, the SPAC process isn’t subject to the same rules about disclosure and marketing practices as standard initial public offerings, and may give companies like Energy Vault Holdings, Inc. more leeway to attract investors with projections of future revenue and profit that may not hold up.
Investors may be vulnerable to a variety of SPAC fraud by sponsors, including: