Stem Leaders Defeat SPAC Misrepresentation Suit Over Prospects

Stem Inc. officers and directors are free of a lawsuit on behalf of the energy storage company over how they described its profit margin and competitive strength, a federal court ruled Tuesday.

The suit over the proxy statement issued in connection with Stem’s merger with a special purpose acquisition company lacks a key component, Judge Maryellen Noreika of the US District Court for the District of Delaware said. The investors didn’t demand that company directors take action themselves, and they didn’t adequately show that such a demand would be futile, she said in tossing the case with finality.

• Noreika previously ...