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Better Holdco De-SPAC Challenged Over Lockup, Buyback Provisions

July 27, 2021, 6:38 PM

A Pine Brook Capital Partners LP affiliate sued Better Holdco Inc. in Delaware, challenging provisions of its planned $6.9 billion merger with a blank-check company that would allegedly force major investors to consent to a six-month stock lockup.

“Pine Brook will not receive any benefit in exchange for its forced agreement” to the provision, which resembles “restrictive terms that it rejected previously,” the complaint says. “Conditioning receipt of the merger consideration on a lockup is inequitably coercive.”

The lawsuit—filed late Monday in Delaware Chancery Court—also targets Aurora Acquisition Corp., the “special purpose acquisition company” that the online mortgage platform plans ...

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