Bloomberg Law
Sept. 23, 2021, 9:33 PM

Latest SPAC Lawsuit Targets GigCapital’s Avi Katz, UpHealth Deal

Mike Leonard
Mike Leonard
Legal Reporter

A blank-check company investor filed suit in Delaware on Thursday against the GigCapital affiliates that engineered its reverse merger with UpHealth Inc., claiming transactions involving a “special purpose acquisition company” nearly always rip off investors because they’re rife with conflicts of interest.

The lawsuit was filed in Delaware Chancery Court by a former shareholder in GigCapital2 Inc., which became UpHealth when the combination closed in June. It targets the SPAC’s pre-deal board—including GigCapital founder Avi Katz and his wife—and the “sponsor” entity, GigAcquisitions2 LLC.

“Although an abysmal deal for Gig2 public stockholders,” the deal was “a financial windfall for Katz” ...

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