Embark Technology Inc. is likely to seek bankruptcy protection or close down, the autonomous truck company’s shareholders told a federal court when requesting preliminary approval of a $2.5 million securities settlement that represents just 1.1% of their estimated losses.
In light of their concerns, the amount “presents a substantial benefit” to the proposed class of investors, they said in a brief to the US District Court for the Northern District of California on Wednesday.
Lead plaintiff Tyler Hardy alleges the special purpose acquisition company that bought the startup failed to perform due diligence. The company held no patents and few ...