In a bench ruling, Vice Chancellor J. Travis Laster granted a request for a temporary restraining order preventing 26 Capital Acquisition Corp., a SPAC whose proposed business combination failed to close, from redeeming its outstanding Class A shares while litigation over the broken transaction proceeds. However, upon motion of Fifth Lane Capital, the Court expressly allowed the distribution of the trust funds held for the benefit of Class A stockholders in the interim. As a result, roughly $37.5 million of proceeds remaining from the SPAC’s IPO may be returned immediately to stockholders.
Morris Kandinov LLP represented Fifth Lane Capital in the litigation. Contact Aaron Morris for additional information.
