The co-founders of Electric Last Mile Solutions, an electric vehicle startup that collapsed into bankruptcy after its SPAC merger, lost their bid to end litigation challenging the transaction that took the company public.
Delaware judge Chancellor Kathaleen St. J. McCormick let the case move forward, saying its shareholder claims against Jason Luo and James Taylor—who resigned over misconduct allegations in 2022—were “more than reasonably conceivable,” Bloomberg reported. The lawsuit also targets architects of the SPAC that combined with ELMS, who have moved to defend the case rather than seeking to have it thrown out.
Electric Last Mile merged in June 2021 with Forum Merger III. The transaction reflected a pro forma implied equity value for the combined company of approximately $1.4 billion. Less than a year later, the EV maker filed for bankruptcy. Read more.
