Alliance Entertainment Hit With Investor Lawsuit Over SPAC Deal

An ex-shareholder sued Alliance Entertainment Holding Corp. on Friday, claiming sponsors of its blank-check merger duped investors into approving the “grossly mispriced transaction.”

The lawsuit also targets the deal’s backers, a group of financial industry executives who formed the special purpose acquisition company that combined with Alliance to take it public, allegedly after a “deeply flawed and unfair process” that ended in its delisting by the New York Stock Exchange.

“Defendants have shown no remorse over subjecting the shareholders to such a disastrous deal,” according to the proposed class action filed in Delaware’s Chancery Court.

A representative for Alliance didn’t ...