M. Klein Loses Bid to Exit MultiPlan SPAC Case With Novel Ruling

M. Klein & Co. and MultiPlan Corp. must face shareholder litigation over claims that they structured a merger between the health analytics business and a blank-check company to shortchange public investors while giving insiders a 1.2 million percent return, a Delaware judge said in a novel ruling.

Vice Chancellor Lori W. Will let the case move forward in Delaware Chancery Court, becoming the first judge to rule on behalf of the leading business court that ordinary fiduciary principles apply to transactions involving “special purpose acquisition companies” like those backed by M. Klein.

SPACs are publicly traded entities raising money on ...