Litigation challenging the blank-check transaction that took Better Therapeutics public is set to end with a whimper after the deal’s architects failed to answer the investor lawsuit filed in Delaware.
Vice Chancellor Sam Glasscock III issued a default judgment Wednesday against Mountain Crest Capital affiliates who engineered the $187 million merger between a SPAC and Better Therapeutics, a biotech business focused on cardiometabolic diseases. The two-page ruling left open the amount of any potential damages.
Mountain Crest, headquartered in South Carolina, didn’t respond to requests for comment Wednesday or after the shareholder complaint was filed, Bloomber reports.
The shareholder filed suit against the SPAC’s sponsors in May, alleging the deal’s lopsided structure gave insiders a huge windfall despite virtually wiping out public investors.
Mountain Crest Acquisition II shareholders approved the deal in October 2021. At that time, shares were trading around $9.30. At the time the lawsuit was filed, Better Therapeutics closed at $1.13.
Better Therapeutics last traded this afternoon at 42 cents.
Mountain Crest and its principals are serial SPAC sponsors whose previous ventures include the blank-check deal that took Playboy public. Read more.
