Marathon hearings begin Monday in a Delaware court where more than 20 companies seek retroactive validation for common stock issued as part of a SPAC merger.
Most of the companies say they may have issued millions of shares without stockholder authorization—in some cases hundreds of millions—after misreading, or getting bad legal advice about, an obscure statutory provision, Bloomberg reports. Now they face uncertainty about their capital structure, with potentially chaotic consequences for the status of their stock and shareholders. Read more.
