Craig McCaw, Astra Space SPAC Deal Sponsors Face Investor Suit

An Astra Space Inc. investor filed suit in Delaware against billionaire Craig McCaw and other backers of its reverse merger with a blank-check company that took the private space cargo business public in a deal valuing it at $2 billion.

The lawsuit, unsealed Wednesday, targets McCaw, his venture capital firm Pendrell Corp., and other former board members at Holicity Inc., the publicly traded “special purpose acquisition company” they sponsored before its combination with privately held Astra.

It accuses them of buying Astra’s hype about its future prospects without any “meaningful diligence,” then continuing to push the transaction after Astra pulled ...