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Ledecky, SPAC Ex-Board Facing Investor Suit Over XL Fleet Merger

Sept. 20, 2021, 10:10 PM

An XL Fleet Corp. investor filed suit in Delaware on Monday against the financiers who backed its combination with a blank-check company—including New York Islanders co-owner Jon Ledecky—claiming they structured the deal to ensure insiders got a windfall at the expense of public shareholders.

The lawsuit in Delaware’s Chancery Court targets Ledecky and other former board members at Pivotal Investment Corp. II, the “special purpose acquisition company” that combined with XL, which specializes in converting commercial trucking fleets from gas to hybrid power.

The board “orchestrated the value-destroying merger,” then “knowingly turned a blind eye to the dilution of Pivotal’s ...