Moelis Sued Over ‘Sham’ SPAC Deal to Take Archer Aviation Public

Ken Moelis and other architects of the deal that took Archer Aviation Inc. public used “wildly misleading” footage to hype the air-taxi startup’s capabilities before the blank-check transaction, a newly unsealed lawsuit says.

An investor is suing the billionaire, his investment bank, and other backers of the merger between Archer and a special purpose acquisition company, a type of publicly traded shell entity. SPAC deals—designed to let startups bypass initial public offerings—have receded from a boom in 2020 and 2021, with scores landing in court after the sector underperformed in the open market.

Moelis allegedly stood by while Archer’s executives ...