Lordstown Backers Lose Bid to Halt SPAC Suit Over Novel Issues

Lordstown Motors Corp.'s leaders and backers lost their bid to pause investor litigation over the blank-check merger that took the electric truck maker public, when a Delaware judge ruled that the lawsuit involves too many novel legal issues to be paused pending the outcome of a parallel case.

Vice Chancellor Lori W. Will denied a motion to suspend proceedings in Delaware’s Chancery Court while a proposed federal securities fraud class action involving similar allegations plays out in a Youngstown, Ohio, federal court.

Although “established doctrines of fiduciary duty are, of course, far from novel,” the country’s premier business court “has ...