Bankrupted Canoo’s Executives Must Battle Investor SPAC Suit (1)

Canoo Inc. executives must defend against shareholder allegations the failed electric-vehicle startup misled them about its potential engineering services’ revenue during its blank-check merger to go public.

The investor sufficiently alleged former executives misled the public because they affirmatively represented that they were pursuing a specific business model and go-to market strategy despite knowing the immediate revenue from its engineering services wouldn’t realize, Judge Fernando M. Olguin said Wednesday.

It would be “absurd” to suggest they weren’t aware of the collapse of the engineering services’ pipeline when projecting revenue given its alleged importance to Canoo’s strategy, the US District Court ...