Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. 

Latest SPAC News:  Energy storage stockholders sue SPAC board alleging deceit, Virgin Orbit stock falls on operations pause, and tax surprises surface for SPACs

Energy Storage Stockholders Sue SPAC Board Alleging Deceit

Stockholders for an energy storage company sued their firm’s board of directors alleging they misled investors when bringing their corporation public through a SPAC merger.

Eos Energy Enterprises Inc., formerly known as B. Riley Principal Merger Corp. II (BRII), renamed itself after merging with the energy storage firm Eos Energy Storage LLC on November 16, 2020.

Virgin Orbit Stock Falls on Operations Pause 

Virgin Orbit (NYSE: VORB) stock is crashing in US premarket price action today after the company announced that it is pausing its operations for a week and has reportedly furloughed most of its employees.

In its SEC filing, Virgin Orbit said, it is pausing operations until March 21 “in order to conserve capital while the Company conducts discussions with potential funding sources and explores strategic opportunities.”

NextGen II completed its business combination with Virgin Orbit in December 2021.

Tax Surprises Surface for SPACs, Spurring Need for Nexus Study

At year-end, unexpected US and state income tax impacts may arise for special purpose acquisition companies—even those formed in offshore locations. SPACs are a popular vehicle for accessing the capital markets—nearly 700 were established during 2021 and 2022, raising more than $175 billion.

Many of these companies were formed in locations such as the British Virgin Islands or the Cayman Islands, which are without US tax treaties. While these locations have historically enjoyed a low- or no-tax reputation, the reality has caught some accounting and management teams off guard. As a result, many professionals have been surprised to learn that tax liabilities may now exist in relation to their SPAC.