SPACs, Executives Beat Investor’s Shell Company Accusations (1)

A pair of blank-check company affiliates defeated an investor’s lawsuit alleging they lured about $3.5 million for a sham startup.

Allegations against Ocean Biomedical Inc. and two special purpose acquisition companies that raised funds for it failed to sufficiently plead securities fraud claims, Judge William F. Jung said. The complaint was “devoid of facts,” contained vague accusations of intent or recklessness to defraud, and lacked details to allege deceptive conduct to further a scheme, the US District Court for the Middle District of Florida judge said Tuesday.

“Plainly stated, Plaintiff has failed to specify any one specific statement that ...