Northern Genesis Acquisition misclassified some of its shares to buy Embark Technology and ultimately overpaid for the autonomous truck startup, a shareholder says in a derivative suit against the companies’ directors, Bloomberg reports.
Former Secretary of Labor and of Transportation Elaine Chao serves on Embark’s board and is among the individual defendants in the suit. Others include Embark’s CEO, Alex Rodrigues, its chief financial officer, and officers and directors of the SPAC. Shareholder Robert Manning II filed the suit Wednesday in the US District Court for the Northern District of California.
The SPAC’s shareholders approved the deal in November 2021 amid 72% redemptions. As a result, 81,121 founders shares were forfeited to institutional investors on the deal. Read more.
