A blank-check company investor filed suit in Delaware against the GigCapital affiliates that engineered its reverse merger with Lightning eMotors, claiming they shortchanged public shareholders because the SPAC was structured to reward them for even a bad deal, Bloomberg reports.
The lawsuit filed in Delaware Chancery Court targets Gig principal Avi Katz and associates he allegedly appointed to the board of GigAcquisitions3, the sponsor behind the combination between Lightning and GigCapital3., one of several Katz-backed SPACs.
Lightning eMotors completed its deal with the SPAC in May, receiving approximately $268 million in gross proceeds, including a $125 million PIPE. Read more.
