Law firm White & Case has quickly ended a lawsuit seeking legal fees from a SPAC whose plans for a $480 million merger fizzled, Reuters reports.
The firm sued Colonnade Acquisition II for more than $8.2 million in legal fees, claiming it stiffed the firm after failing to consummate a planned $480 million merger and then announcing plans to wind down this month.
The settlement came about quickly.
New York-founded White & Case sued the SPAC and its directors in New York state court last week, arguing the firm will be “irreparably harmed” if the blank-check company liquidated and dissolved before paying the fees it owes.
Colonnade, led by investors Joseph Sambuco and Remy Trafelet, raised $300 million in an IPO and started trading on the NYSE on March 10, 2021. In August 2022, payments provider Plastiq said it would go public through a merger with the firm, creating a company with a value of about $480 million.
The SPAC did not complete the combination by its March 12 deadline, however, and on March 9 issued a press release that it would cease operations, redeem the public shares and dissolve. Read more.
