SPAC Shareholder Sues Over Loss On $1B XL Fleet Merger
By Leslie Pappas (September 21, 2021, 9:29 PM EDT) -- A special purpose acquisition company investor who lost money in the $1 billion merger that created XL Fleet Corp. has launched a proposed class action against the electric vehicle systems provider in Delaware's Chancery Court, alleging that insiders drove an unfair "value-destroying" deal process that misled shareholders.
Investor Cody Laidlaw alleges in his complaint Monday that directors of the SPAC Pivotal Investment Corp. II pushed for the December merger with Boston-based startup XL Hybrids Inc. even though they knew it was bad for shareholders.
"Although an abysmal deal for Pivotal's Class A stockholders, the merger provided a financial windfall for the holders...
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