A former Velodyne Lidar shareholder sued the architects of its blank-check merger, claiming they duped investors into a doomed deal that gave insiders a huge windfall, Bloomberg reports.
The lawsuit, made public Wednesday, targets hedge fund Owl Creek Asset Management and other backers of Graf Industrial, the SPAC that combined with Velodyne to take it public. The company, which developed autonomous driving technology, later merged with Ouster Inc., a rival also formed by a SPAC transaction.
The proposed class action echoes dozens of other cases in Delaware’s Chancery Court, the country’s premier venue for M&A fights.
Velodyne is a top maker of the laser sensors that are viewed as crucial for the operation of autonomous vehicles.
The tech company merged in September 2020 with Graf Industrial. Read more.
