QuantumScape Settles SPAC Merger Challenge for $8.75 Million

QuantumScape Corp., its senior leaders, and the special-purpose acquisition company that took the lithium-battery maker public in 2020 won approval Friday for a $8.75 million settlement to resolve a shareholder class action challenging the merger.

The cash deal is a “very healthy recovery” balanced with the “healthy” defenses that could have been expected to advance at trial, said Vice Chancellor Nathan A. Cook, ruling from the bench for the Delaware Chancery Court.

“The consideration here is adequate and fair,” he said.

The complaint alleged the company had “over-promised” its developmental capabilities and timeline, based on information that came to ...