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Lightning eMotors de-SPAC Challenged Over Alleged Deal Conflicts

Aug. 5, 2021, 5:03 PM

A blank-check company investor filed suit in Delaware against the GigCapital affiliates that engineered its reverse merger with Lightning eMotors, claiming they shortchanged public shareholders because the “special purpose acquisition company” was structured to reward them for even a bad deal.

The lawsuit, docketed Thursday in Delaware Chancery Court, targets Gig principal Avi Katz and associates he allegedly appointed to the board of GigAcquisitions3 LLC, the sponsor behind the combination between Lightning and GigCapital3 Inc., one of several SPACs backed by Katz.

“This court should take this opportunity” to “put an end to the money-grabbing SPAC bonanza that has been ...