Phunware Sued by Angel Investors Challenging SPAC Stock Lockup

A group of Phunware Inc. investors sued the business and its leaders in Delaware, claiming they were wrongly subjected to a stock lockup clause after its reverse merger with a blank-check company, even though the provision only covers insiders and shareholders with stakes larger than 1%.

The lawsuit, filed Feb. 18 by more than dozen individual stockholders and investment firms, targets the mobile marketing and cryptocurrency services company, along with current and former members of its board and senior management.

It accuses them of refusing to issue unrestricted shares over a six-month period to small angel investors who held stock ...