Leaders and backers of a blank-check company that merged with Hyzon Motors in 2021 must face an investor’s claims they overstated the hydrogen-fuel-cell vehicle maker’s customer base and financial health, a Delaware judge ruled Monday.
“At this stage, the plaintiff has stated a claim for breach of fiduciary duty based on materially misleading disclosures and omissions,” Vice Chancellor Paul Fioravanti Jr. of Delaware’s Chancery Court said, ruling from the bench.
Bloomberg reports that news releases and presentations about Hyzon’s customers may have given investors the wrong impression about potential vehicle orders and about business relationships with blue-chip companies, he said.
Decarbonization Plus Acquisition stockholders approved the business combination with Hyzon Motors two years ago this week. Hyzon is a global supplier of zero-emissions hydrogen fuel cell powered commercial vehicles. The pro forma implied enterprise value of the combined company was $2.1 billion at the time. Read more.
