ArticleFarrell Fritz partner Alon Kapen was recently quoted in a Bloomberg News article examining the growing scrutiny surrounding private market investments in leading AI companies, including Anthropic and OpenAI.
The article explores the surge in secondary market activity and the increasing use of special purpose vehicles (SPVs), as well as the significant risks investors may face when transactions occur outside of company-approved channels. As uncertainty ripples through the market following Anthropic’s crackdown on unauthorized share sales, Alon provides key legal insight into the implications for investors.
From the article:
“Anthropic said the SPVs are void, not voidable, meaning it was never valid to begin with,” said Alon Kapen, partner at law firm Farrell Fritz. “That essentially means these investors in the SPVs don’t have a claim against Anthropic.”
Many SPV investors bought interest in “an empty box,” he added.
Kapen, the Farrell Fritz attorney, expects that matters will ultimately be resolved in court. In the meantime, many would-be investors are left guessing. In the family office chat about whether holders of Anthropic SPVs were hosed, one person offered a curt reply: “Ask Claude.”
Read the article here: Anthropic Stock Crackdown Jolts Buyers in Pre-IPO AI Startups – Bloomberg
Additional Information
Related Practice Areas
