The current government shutdown is beginning to ripple through capital markets, creating uncertainty for companies and their legal advisors. “If you’re conducting your IPO and your registration statement wasn’t declared effective before the shutdown, your actions are very limited. It’s kind of like the door has been closed and you’ve been left outside.” said Margaret K. Rhoda, securities and capital markets partner, in an interview with Law360. While the immediate impact has been limited, capital markets attorneys caution that prolonged disruptions could slow deal activity, delay capital raising, and heighten uncertainty across the market.
While some IPOs have managed to close just in time, others are facing delays and disruptions as the SEC’s ability to review and approve filings grinds to a halt. For law firms and their clients—particularly smaller public companies—the longer the shutdown continues, the greater the potential impact on deal activity, capital raising, and routine compliance.
To read the full interview on Law360‘s website, click here.