Lion Electric shareholders sued the architects of its blank-check merger in Delaware on Thursday, saying they tricked investors into a lousy deal that gave insiders a windfall, Bloomberg reports.
The proposed class action targets Northern Genesis Capital Group affiliates who sponsored the SPAC that combined with the electric truck and bus maker to take it public in 2021. The lawsuit in Delaware’s Chancery Court says they were driven by lopsided incentives to push the Lion Electric merger, no matter how it might turn out.
Lion manufactures all-electric medium and heavy-duty urban vehicles.
The deal closed in May 2021, resulting in proceeds of approximately $490 million to Lion, after payment of transaction expenses. Read more.
