Former Citigroup executive Michael Klein and his blank check firm’s former directors must face a shareholder lawsuit challenging its $11 billion merger with health care-focused data analytics company MultiPlan, a Delaware judge ruled, according to reporting by Reuters.
Churchill III merged with MultiPlan to take the company public.
Vice Chancellor Lori Will of the Delaware Chancery Court declined to drop claims accusing Klein and the SPAC’s other board members of illegally preventing shareholders from selling their shares back to the SPAC before the October 2020 merger.
Will said in her opinion Delaware courts have not had the opportunity before to “consider the application of our law in the SPAC context.” Read more.
