Lordstown Motors SPAC Merger Challenge Settles for $15.5 Million

Architects of the blank-check merger that took electric vehicle maker Lordstown Motors Corp. public will pay $15.5 million to end shareholder litigation challenging the deal.

The settlement, filed Monday, would resolve a proposed class action consolidated in Delaware’s Chancery Court, where parallel cases were brought by investors in Lordstown and DiamondPeak Holdings Corp., the special purpose acquisition company it combined with in 2020.

The settlement came about a week after the company, which filed for Chapter 11 bankruptcy protection in June, agreed to settle a Securities and Exchange Commission probe for $25.5 million. Lordstown got court permission in October ...