Struggling Embark Gets Nod for $2.5 Million Investor Suit Accord

Embark Technology Inc. can proceed with plans for a $2.5 million settlement with shareholders who claim more than $230 million in total losses from their investments, a federal judge in California said, acknowledging the autonomous truck company’s “tenuous” financial position.

The settlement merits preliminary approval, Judge Jacqueline Scott Corley said Tuesday.

The case stems from Embark’s merger with a special purpose acquisition company as a route to going public. A number of companies formed from such SPAC deals have stumbled, with investors pointing to culprits such as insiders’ incentives as the cause for alleged due diligence and other problems.

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