Core Scientific’s SPAC Deal Backers Sued Over Blank-Check Merger

A Core Scientific Inc. shareholder sued the architects of its blank-check merger, claiming they were driven by lopsided incentives to dupe investors into a doomed $4.3 billion deal for the now-bankrupt Bitcoin miner.

The lawsuit targets XMS Capital Partners LLC, Transition Equity Partners LLC, and the finance and energy industry executives behind Power & Digital Infrastructure Acquisition Corp., the special purpose acquisition company that combined with Core to take it public. The transaction was said to make Core the world’s largest publicly traded Bitcoin miner by computing power.

The allegations echo dozens of other cases in Delaware’s Chancery Court, the ...