Stem Beats Investor Lawsuit Over SPAC Merger, Automation Claims

Stem Inc. and architects of its blank-check merger defeated allegations they misled investors about its key software platform Athena and business prospects during and after going public.

Investors leading the case failed to allege any false or misleading statements about Athena’s automated capabilities and success surrounding the 2021 special-purpose-acquisition-company deal, Judge Maxine M. Chesney said while dismissing the suit without leave to amend Wednesday.

Statements “clearly pointed out certain functions of Athena that were automated,” but the shareholders didn’t identify any language “that would lead a reasonable investor to believe Athena’s functions were exclusively automated,” said the US District Court ...