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EQRx Deal Is Latest SPAC Merger to Face Suit Over Investor Vote

Oct. 4, 2021, 6:52 PM

A blank-check company investor filed suit in Delaware against the financiers backing its reverse merger with EQRx Inc., bringing the latest in a wave of court challenges that slam “special purpose acquisition companies” with rhetorical broadsides while asserting relatively narrow legal claims.

The proposed class action, filed in Delaware Chancery Court, targets CM Life Sciences III Inc.—the SPAC—and its board, including principals of the investment firms that engineered the transaction, Casdin Capital LLC and Corvex Management LP.

The lawsuit accuses them of wrongly planning to hold a single shareholder vote on the issuance of nearly 900 million new shares in ...