Ackman SPAC Hit With Investor Suit Questioning Its Legality (2)

The largest SPAC to ever hit the market is operating illegally as an investment company, a new lawsuit against billionaire Bill Ackman’s Pershing Square Tontine Holdings Ltd. claims.

Less than a month after the blank-check company abandoned plans for a deal with Universal Music Group, it’s facing a civil suit from a shareholder claiming that it fits the description of an investment company and should be regulated as one, starting with the “staggering” compensation paid to Pershing Square Capital Management as investment adviser.

The suit by shareholder George Assad could have wide-ranging implications for the financial industry if ...