SPAC Pioneer M. Klein Sued Over MultiPlan Blank-Check Merger (1)

A “blank check” company investor sued MultiPlan Corp. and the M. Klein & Co. affiliates that sponsored its merger with a special purpose acquisition company, claiming in Delaware on Thursday that they made a 1.2 million percent return on the backs of public investors who got ripped off.

While former Citigroup Inc. investment banking chief Michael Klein turned a $25,000 investment into $300 million, “the unlucky investors” who “put their faith in M. Klein’s skills and abilities received a rude—but prompt—awakening,” the complaint says. “The result has been a financial catastrophe.”

The proposed class action, filed in Delaware Chancery Court, ...