Canoo SPAC Deal Sponsors Win Again in Blank-Check Merger Suit

The blank-check merger that made electric vehicle startup Canoo Inc. into a publicly traded company should stand undisturbed, the Delaware Supreme Court said Monday.

A Hennessy Capital LLC investor had argued the Delaware Chancery Court erred in dismissing his challenge to the transaction in May 2024. But the high court’s full-five member panel ruled unanimously that the chancery’s dismissal should be affirmed, Justice Karen L. Valihura said in an order.

The investor, Paul White Jr., alleged in 2022 that Hennessy Capital and its principals misled investors about changes to Canoo’s business model. The suit comes as many other shareholders ...