The Delaware Court of Chancery has approved a $12.5 million all-cash settlement resolving claims relating to the distribution of the remaining assets of FAST Acquisition Corp., a special purpose acquisition company (SPAC) formed to make an acquisition in the hospitality and entertainment industry. When the SPAC’s only potential business combination was terminated by the target, it recieved a cash termination fee pursuant to the transaction agreement. The litigation arose after FAST’s management announced that FAST was winding down, but would not distribute the termination fee to public stockholders. Special Opportunities Fund, Inc., a closed-end investment fund, filed a class action suit against the SPAC and its management to enjoin the distribution of the termination fee to insiders and require that the funds be distributed pro rata to all holders of publicly traded common stock. The settlement resulting from the litigation provides $12.5 million in cash for pro rata distribution to public stockholders.
Morris Kandinov LLP represented Special Opportunities Fund in the litigation. Further details and information regarding the settlement can be found on FAST’s settlement website.
Please contact Aaron Morris with questions regarding the case or settlement.
