A court fight over the blank-check deal that took Better Therapeutics public is back on after the transaction’s architects belatedly responded to the Delaware lawsuit, saying they hadn’t been aware of it, Bloomberg reports.
Vice Chancellor Sam Glasscock III on Tuesday vacated his default judgment against Mountain Crest Capital affiliates who engineered the $187 million merger between a special purpose acquisition company and Better Therapeutics, a biotech business focused on cardiometabolic diseases.
The shareholder leading the litigation had consented to the request to have the case reinstated after Mountain Crest and several of its principals said they were never served.
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 33 cents. Read more.
