Better Therapeutics SPAC Deal Challenge Must Proceed, Judge Says

Mountain Crest Capital LLC must face an investor’s lawsuit that claims the blank-check deal that took Better Therapeutics Inc. public resulted in a windfall for insiders, the Delaware Chancery Court ruled Friday.

The investor claimed stockholders received misleading information about the $187 million merger between the digital therapeutics business and a special purpose acquisition company. Those allegations “are not strong” yet they “lie on side of viability,” Vice Chancellor Sam Glasscock III said in a 29-page opinion denying a motion to dismiss.

The case “appears to be the first to deny a motion to dismiss solely on an affirmative statement ...