A Better Therapeutics shareholder sued the architects of its blank-check transaction, claiming the deal's lopsided structure gave insiders a huge windfall despite virtually wiping out public investors, Bloomberg reports.
The lawsuit targets the Mountain Crest Capital affiliates who engineered the $187 million merger between Better Therapeutics and SPAC Mountain Crest Acquisition II. The SPAC's shareholderrs approved the deal in October 2021. At that time, shares were trading around $9.30. Better Therapeutics closed today at $1.13, down 2.59%.
Better Therapeutics is developing a novel form of cognitive behavioral therapy to address the root causes of cardiometabolic diseases.
Mountain Crest and its principals are serial SPAC sponsors whose previous ventures include the blank-check deal that took playboy public.
The dispute in Delaware's Chancery Court is the latest in a wave of investor litigation prompted by transactions that give private businesses a shortcut to capital markets through blank-check transactions. Read more.