XL Fleet Corp. Sued by Investor Over SPAC Merger That Created It

An XL Fleet Corp. investor sued it in Delaware on Friday, claiming the financiers who sponsored the blank-check merger that took the hybrid car company public—including New York Islanders co-owner Jon Ledecky—knew it was a lemon before engineering the deal.

The lawsuit, filed in Delaware Chancery Court, concerns the merger with a special purpose acquisition company, or SPAC, that transformed the former Legacy XL into XL Fleet. The company focuses on retrofitting gas-powered commercial vehicles, such as trucking fleets, with electric motors.

SPACs, or blank-check companies, are publicly traded entities that raise money on the promise of a future merger ...