Class action-specialist law firm Pomerantz announced it is investigating claims on behalf of investors in 26 Capital Acquisition, the SPAC that has been trying to merge with the Okada Manila casino in the Philippines since October 2021.
Pomerantz’s investigation concerns whether 26 Capital and its officers and directors have engaged in securities fraud or other unlawful business practices.
The suit is just the latest twist in an increasingly acrimonious saga.
The SPAC, which is controlled by CEO and chairman Jason Ader, has been involved in a bitter spat with Okada Manila parent company Universal Entertainment that has involved charges of bribery, fraud and accusations of lying on both sides.
The allegations Pomerantz is investigating match up to those made by Universal in the course of its suit, reports iGaming Business.
At deal announcement the agreement valued Okada Manila at an enterprise value of $2.6 billion.
Under the terms, the SPAC would invest the $275 million generated by its IPO into the Philippines casino complex. Okada Manila, now known as UE Resorts International, ultimately would list on the Nasdaq.
The casino’s corporate parent tried to terminate the deal in March. That followed a lawsuit filed by 26 Capital against Okada in February “because they were not honoring their contractual obligations and refusing to do the work required to close,” according to the court filing.
UE Resorts International countersued. The counterclaims, filed with the Delaware Court of Chancery, accused 26 Capital and its founder, Jason Ader, of fraud, of breaching US securities laws and of breaching the terms of the merger.
A SPAC spokesperson called the counterclaims “a desperate litigation strategy.”
The transaction has also been hamstrung by the maneuverings of namesake founder Kazuo Okada, whose often forceful efforts to reclaim his spot at the company included a brief physical takeover of the hotel last year. Read more.
