Practical Considerations For Litigating Against SPVs
By Matthew Ingber, Christopher Houpt, James Ancone and Jarman RussellOctober 3, 2017, 12:42 PM EDT
Law360, New York (October 3, 2017, 12:42 PM EDT) -- In the wake of the financial crisis, many lawsuits seeking to recover damages for alleged investment losses have been filed by special-purpose vehicles (SPVs). Some of these entities were created specifically for litigation, while others were pre-existing investment vehicles that ended up owning litigation claims.
In the simplest terms, an SPV is a legal entity created to fulfill a narrow and temporary objective, and they typically are used to protect other parties — including their founders, managers, creditors and owners — from unintended risk. They are...