A Pivotal Investment Corp. II investor has sued the blank-check company’s board in a Delaware over its completed $1 billion merger with commercial truck-focused electric vehicle technology company XL Fleet, Reuters reports.
Investor Cody Laidlaw, represented by Grant & Eisenhofer, filed a proposed class action in the Delaware Chancery Court accusing the SPAC’s leaders of perpetuating a “disturbing trend” among SPACs by completing an allegedly conflicted deal.
“The Pivotal transaction failed to observe the most basic principle of Delaware corporate governance: namely, that a corporation’s governance structure should be designed to protect and promote the interests of public stockholders, not the financial interests of its insiders and controllers,” Laidlaw said.
Laidlaw filed the suit more than four months after suing XL Fleet for access to the company’s books and records to investigate potential wrongdoing in completing the merger, which closed in December 2020. Read more.
