Auditor BDO Remains in Investor Suit Over EV Maker’s SPAC Merger

BDO USA PC must answer to claims that it misrepresented Electric Last Mile Solutions Inc.‘s financials before the automaker offered shares in connection with a blank-check merger, a federal court ruled.

BDO is now the only defendant in the proposed class action in the US District Court for the District of Delaware over the electric vehicle company’s “private investment in public entity” offering. The accounting company is in the process of settling a similar suit on behalf of a different class of shareholders in the District of New Jersey. Both suits allege the startup’s merger with a special purpose ...