Cantor Fitzgerald, L.P. Rotten Score Breakdown

The U.S. Securities and Exchange Commission charged Cantor Fitzgerald, L.P. in December 2024 with causing two special purpose acquisition companies under its control to make materially misleading statements to investors. The case involved CF Finance Acquisition Corp. II and CF Acquisition Corp. V. Cantor executives and personnel managed and controlled the two SPACs. Together, the SPACs raised approximately $750 million from investors through initial public offerings. According to the SEC, filings made in connection with the SPAC IPOs stated that the companies had not contacted prospective merger targets and had not engaged in substantive discussions with potential acquisition targets. The SEC found that those statements were inaccurate. According to the Commission, Cantor personnel acting on behalf of the SPACs had already begun substantive discussions or negotiations with a small group of potential merger targets before the IPOs. Those potential targets included View, Inc. and Satellogic Inc. The two SPACs ultimately merged with View and Satellogic respectively. The SEC stated that information concerning pre-IPO discussions with potential merger targets was important to investors evaluating the SPACs and therefore needed to be materially accurate. The SEC charged Cantor with causing violations of antifraud and proxy provisions of federal securities law. Without admitting or denying the SEC's findings, Cantor Fitzgerald agreed to cease and desist from violations of the charged provisions and pay a $6.75 million civil monetary penalty. Primary source: U.S. Securities and Exchange Commission — SEC Charges Cantor Fitzgerald Over Misleading SPAC Disclosures: https://www.sec.gov/newsroom/press-releases/2024-199