UpHealth SPAC Lawsuit Advances Against GigCapital’s Avi Katz

Backers of the blank-check merger that took public lost their bid Wednesday to end litigation in Delaware over claims they duped into approving the transaction.

Chancellor Lori W. Will let the proposed class action move forward, saying it's plausible Israeli businessman Avi S. Katz and other affiliates of GigCapita l — which sponsored the shell company that combined with UpHealth — were driven by the deal's lopsided structure to mislead shareholders about its details, reports.

If true, the allegations show the financiers were motivated to minimize opt-outs.

The deal closed in June 2021, when UpHealth shares were trading at $89.40. The stock last traded today at $2.18. Read more.

Source: UpHealth SPAC Lawsuit Advances Against GigCapital's Avi Katz