Mountain Crest Faces Lawsuit Over Better Therapeutics SPAC Deal

May 1, 2023, 5:42 PM UTC

A Better Therapeutics Inc. shareholder sued the architects of its blank-check transaction, claiming the deal’s lopsided structure gave insiders a huge windfall despite virtually wiping out public investors.

The lawsuit targets the Mountain Crest Capital LLC affiliates who engineered the $187 million merger between Better Therapeutics and a special purpose acquisition company. Mountain Crest and its principals are serial SPAC sponsors whose previous ventures include the blank-check deal that took Playboy public.

The dispute in Delaware’s Chancery Court is the latest in a wave of investor litigation prompted by transactions that give private businesses a shortcut to capital markets through ...

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