FAST Acquisition, a SPAC backed by Ruby Tuesday founder Sandy Beall, will pay $12.5 million to resolve investor litigation alleging Beall and others tried to keep for themselves a $33 million breakup fee to end a planned merger with the parent company of Golden Nugget casinos, under a settlement approved by the Delaware Court of Chancery.
Vice Chancellor Paul Fioravanti Jr. also approved a $2 million attorneys fee award, plus almost $43,000 in expenses, Bloomberg reported.
A $5,000 incentive award for the class's lead plaintiff, Special Opportunities Fund, will be deducted from the attorneys fee award.
FAST Acquisition said when the lawsuit was filed in August 2022 that it would vigorously defend itself against the plaintiffs over the SPAC's intention to keep the breakup fee from the failed deal — without sharing the fee proceeds with shareholders. FAST liquidated later that same month. Read more.