SPAC Sues Breast Imaging Company, Demanding They Merge

A blank-check company sued QT Imaging Inc. for breach of contract, alleging it tried to renege on their merger agreement and pursue an alternative transaction with another company.

GigCapital5 Inc., a special purpose acquisition company backed by Israeli businessman Avi S. Katz, asked the Delaware Chancery Court on Sept. 12 to order that QT Imaging, a breast cancer screening company, perform its obligations under their merger agreement and consummate its closure. And it asked the court to enjoin QT from further breaches.

GigCapital5’s case is a rare instance of a SPAC suing its acquisition target in order to secure the ...