Billionaire SPAC Kings Get Taken to Court After Boom Goes Bust

The unwinding of the blank-check stock frenzy, one of the hottest pandemic-era trends on Wall Street, is playing out its last act on a different stage: the courtroom.

The raucous boom in special-purpose acquisition companies — which bankrolled takeovers that resulted in back-door public offerings for businesses seeking to sell everything from flying motorcycles to infrastructure in space — has spawned a wave of litigation, with dozens of cases filed by burned investors working their way through court.

In the last few months alone, they’ve taken aim at some of the most well-known operators: Chamath Palihapitiya,the former Facebook executive ...