SPAC Affiliate Faces Lawsuit After Drug Bust Drops Price (1)

A former CCUR Holdings Inc. shareholder filed suit in Delaware against its board—including a brother of convicted junk bond scammer Gary Singer—claiming it wrongly wrote off insured funds seized in a drug bust when cashing out investors.

The lawsuit, docketed Tuesday in Delaware Chancery Court, targets a 3,000-to-1 “reverse stock split” being undertaken by CCUR, a holding company that owns real estate and merchant cash advance operations, which holds warrants to buy 8 million shares of Spartacus Acquisition Corp., a SPAC with $200 million behind it.

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