Electric Last Mile Board, Backers Hit With SPAC Merger Challenge

Electric Last Mile Solutions Inc. investors filed suit in Delaware against its board and backers of the blank-check merger that took the company public, claiming they fraudulently portrayed the importer of Chinese cars as an electric vehicle maker in a scheme to cash in on the deal’s lopsided structure.

The lawsuit, made public Monday, targets the transaction’s sponsor, Forum Investors III LLC, and board members tied to the financial firm. It accuses them of duping investors into participating in the merger so that Forum and its affiliates could collect “a king’s ransom” when it closed.

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