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MoKa Brings Suit Against SPAC Managers To Enjoin Dissolution On Unfair Terms

Covered by Law360

Morris Kandinov LLP has filed a class action complaint on behalf of investors in FAST Acquisitions Corp. (Ticker: FST) to prevent the sponsor from dissolving the SPAC without first distributing its net assets to investors.

By MoKa
08/9/22

On August 3, 2022, the sponsor announced that the SPAC had failed to identify a business combination and would wind down. It also announced that the SPAC would redeem outstanding public shares without distributing approximately $23.7 million of the SPAC’s net assets, which consists largely of a breakup fee paid by a counterparty that terminated a potential merger with the SPAC last year. Instead, the breakup fee would be distributed to the sponsor and the SPAC’s officers and directors, who hold financial interests in the sponsor. The SPAC’s officers and directors had previously stated that the termination fee was obtained for the benefit of the SPAC and all of its stockholders.

The class representative in the suit is Special Opportunities Fund, Inc., a closed-end fund managed by Bulldog Investors, LLP. The case is pending in the Delaware Court of Chancery.

Contact Aaron Morris for additional information regarding the case at aaron@moka.law.