The co-founders of Electric Last Mile Solutions Inc., an electric vehicle startup that collapsed into bankruptcy after its blank-check merger, lost their bid Monday to end litigation challenging the transaction that took the company public.
A Delaware judge, Chancellor Kathaleen St. J. McCormick let the case move forward, saying its shareholder claims against Jason Luo and James Taylor—who resigned over misconduct allegations in 2022—were “more than reasonably conceivable.” The lawsuit also targets architects of the special purpose acquisition company that combined with ELMS, who have moved to defend the case rather than seeking to have it thrown out.
The failed ...
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