Core Scientific Blank-Check Deal Backers Settle Court Challenge

Private equity architects of Core Scientific Inc.'s merger with a blank-check firm will pay $14.75 million to end shareholder litigation over the going-public transaction.

The settlement, filed in Delaware’s Chancery Court, would resolve claims that XMS Capital Partners LLC affiliates duped investors into a doomed $4.3 billion deal because its structure would give insiders a windfall from any transaction, even one that wiped out public shareholders.

Core Scientific, which became the largest publicly traded Bitcoin miner by computing power, later declared Chapter 11 and reinvented itself as a data center business focused on artificial intelligence. The company’s stock has ...