’s SPAC Backers Accused of Driving Disastrous Deal

An investor sued architects of's blank-check merger, claiming they duped shareholders into approving the “catastrophic” deal because its lopsided structure gave them a windfall no matter how it turned out.

The lawsuit targets the group of financial industry veterans—many with ties to or the former Soviet bloc—who backed Trident Acquisition, the SPAC that combined with the former in 2021 to take it public as

“The interests of these insiders in getting any deal done” drove them to push “whatever deal they could find,” regardless of whether that deal was good for public shareholders, according to the lawsuit.

A suit alleging similar claims against the company was filed in December.

Trident shareholders approved the deal in October 2021, when was expected to receive over $63 million in gross proceeds. Trident stockholders were so enthused for the deal that less than 1% of the SPAC's shares were redeemed ahead of the merger vote. was in penny-stock territory this afternoon at 32 cents a share, down 98% from 2021 when the stock was hovering around $15 in the days after the SPAC merger closed. Read more.

Source:'s SPAC Backers Accused of Driving Disastrous Deal