Law firm Schulte Roth & Zabel has filed a second lawsuit in its bid to recover more than $1.9 million in legal fees from a former client whose merger plans fizzled, hoping to stave off the dissolution of the SPAC it represented until the firm is paid.
Schulte on Wednesday sued Continental Stock Transfer & Trust Company, a trustee for the trust account of its former SPAC client 26 Capital Acquisition, in New York state court. The lawsuit seeks a judgment prohibiting Continental from liquidating and disbursing funds in the trust account for 26 Capital to shareholders.
Schulte advised 26 Capital on its planned $2.5 billion SPAC merger with an affiliate of Japan’s Universal Entertainment that owned the Okada Manila casino resort. A Delaware judge last month refused to order Okada Manila to complete the merger in part because of disclosure failures in the deal, which if completed would have generated $275 million for the casino.
The New York-founded law firm sued 26 Capital on Sept. 26 in Delaware’s Court of Chancery to halt its dissolution. A judge the following day granted the law firm’s motion for a temporary restraining order to block 26 Capital from liquidating and dissolving before it pays the fees. The temporary restraining order has since been extended in the Delaware court, Reuters reports. Read more.
