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Dune SPAC Drops TradeZero Lawsuit After $5 Million Settlement

Jan. 24, 2023, 4:58 PM

Dune Acquisition Corp., a blank-check company that sued merger partner TradeZero Holding Corp. for fraud, has dropped the case about three weeks after calling off the transaction and disclosing a $5 million settlement.

The two companies docketed a filing Monday in Delaware’s Chancery Court, where the special purpose acquisition company accused TradeZero last year of duping it into the $556 million deal with bogus financials before trying to run out the clock and pass on the substantial cost of canceling it.

The dispute was part of a wave of litigation prompted by SPAC mergers, called de-SPACs, which combine a publicly ...