Polestar Investors Sue Billionaire Gores on EV Maker’s SPAC Deal

Polestar Automotive Holding UK Plc investors sued billionaire Alec Gores and other architects of its blank-check merger, claiming they duped investors into a disastrous deal that gave insiders a windfall.

The lawsuit, filed Tuesday, targets former backers of Gores Guggenheim Inc., the special purpose acquisition company that combined with Polestar affiliates to take the electric vehicle business public. Polestar was previously a subsidiary of Volvo Car AB, the Swedish automaker owned by China’s Zhejiang Geely Holding Group Co.

The proposed class action echoes dozens of other cases in Delaware’s Chancery Court, the country’s premier venue for M&A fights, which ...