CF Finance Officers Sued for Fiduciary Duty Breach During Merger

Former CF Finance Acquisition Corp. II stockholders filed a class action against the company’s officers and directors in the Delaware Chancery Court, alleging that they breached their fiduciary duties during its special purpose acquisition company’s merger.

The complaint alleges that the defendants set up CF II and purchased shares in a way that gave them an incentive to “enter into any business combination and avoid liquidation” at the expense of the plaintiffs. Because of its conflicting incentives, the board approved a merger with Legacy View, Inc., and took steps “to ensure its approval by disseminating a false and misleading proxy ...