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MultiPlan Pays $34 Million to End Suit Over M. Klein SPAC Merger

Nov. 18, 2022, 7:32 PM

MultiPlan Corp. will pay $33.75 million to end investor litigation over its blank-check merger with a special purpose acquisition company backed by Michael Klein, a former top executive at Citigroup Inc.

The two sides docketed a settlement Friday, more than 10 months after a judge issued a novel ruling letting the case move forward in Delaware’s Chancery Court, where a wave of lawsuits has taken aim at structural features of the SPAC deals that exploded in popularity in 2020.

SPACs are publicly traded entities raising money on the promise of a reverse merger with a private business that can then ...