SPACs Churn Out Restatements, Again, to Correct Accounting (1)

Scores of the blank-check companies that set the IPO market ablaze in 2020 are once again stumbling over accounting errors.

More than 160 SPACs have issued warnings in the last week that their past financial reports can’t be relied on, and that they have to redo, or restate, their financial statements, securities filings show.

It’s the second time this year that many of the special purpose acquisition companies have had to officially flag problems with their accounting and go through the time, expense, and negative publicity of a restatement. An SEC warning in April about accounting for warrants—investor incentives ubiquitous ...