QuantumScape Sued by Investor Eyeing Challenge to SPAC Merger

May 6, 2022, 6:55 PM UTC

A QuantumScape Corp. investor sued the company in Delaware over claims that sponsors of its blank-check merger overstated the automotive battery maker’s value in a scheme to earn an 8,000-fold return on “founder shares” they’d given themselves for fractions of a penny each.

The lawsuit, filed Thursday, seeks documents from QuantumScape to investigate allegations that the financiers behind acquirer Kensington Capital Acquisition Corp. plunged the “special purpose acquisition company” into a dramatically overpriced transaction because they were set to make windfall profits from even a bad deal.

“The acquisition bears all the hallmarks of a board trying to quickly engage ...

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