TCW Group is facing litigation in Delaware for scuttling a potential blank-check transaction and instead dissolving a SPAC backed by the asset manager.
The lawsuit filed Tuesday also targets several top TCW executives, including CEO David Lippman. The brewing legal fight appears to be the first in Delaware’s Chancery Court—the leading US forum for M&A disputes—among sponsors of a SPAC.
The suit by a group of investors says TCW brought them on to spread out risks.
TCW Special Purpose Acquisition redeemed shares and shut down in 2022.
TCW in a March 2021 IPO raised $450 million “to identify, merge with and take public a durable and predictable business well positioned to deliver superior revenue growth.”
The SPAC was sponsored by global investment management firm The TCW Group. Management is associated with TCW’s New America Premier business unit, which was established by Joseph R. Shaposhnik in 2015. Read more.
