UpHealth, Leaders Beat Cloudbreak Investor Suit Over SPAC Merger

A Delaware judge tossed a lawsuit by Cloudbreak Health LLC‘s early investors against architects of a blank-check merger between the telehealth company and UpHealth Holdings Inc., saying it suffered “numerous defects.”

The Delaware Court of Chancery lacks jurisdiction over the merger’s transfer agent, a New York corporation with its sole place of business there, Vice Chancellor Lori W. Will said Friday. Some claims of fraud, negligent misrepresentation, and related civil conspiracy tied to the deal were time-barred, given the lawsuit was filed more than three years after Cloudbreak’s merger agreement was executed in 2020.

Cloudbreak was founded in ...