A group of Phunware investors sued the business and its leaders in Delaware, claiming they were wrongly subjected to a stock lockup clause after its reverse merger with a blank-check company, even though the provision only covers insiders and shareholders with stakes larger than 1%, Bloomberg reports.
The lawsuit, filed by more than dozen individual stockholders and investment firms, targets the mobile marketing and cryptocurrency services company, along with current and former members of its board and senior management. It accuses them of refusing to issue unrestricted shares over a six-month period to small angel investors who held stock.
Phunware went public in 2018 through a merger with Stellar Acquisition III. Read more.
