Dune Acquisition in an 8-K filing said management had agreed to settle and receive $5 million in its lawsuit against TradeZero, a stock trading platform. The two initially announced plans in October 2021 for a merger, but the deal collapsed in April last year with the SPAC alleging fraud against TradeZero.
Dune had claimed the brokerage platform duped the SPAC’s management into a $556 million reverse merger before “trying to run out the clock on the transaction” and stick the blank-check company with the substantial cost of calling it off.
In the aftermath of the terminated deal, Dune stockholders approved a deadline extension, giving the SPAC until December 2023 to close a different deal. However, 93% of the Dune trust was wiped out due to redemptions in the wake of the extension vote last June. Read more.
