Morris Kandinov LLP represents a private investment partnership in connection with a lawsuit seeking to prevent the sponsor of Pioneer Merger Corp. (PACX) from pocketing a merger break-up fee paid to the SPAC. The case is the third in recent months involving a break-up fee after a SPAC deal fell through. Following the termination, Pioneer negotiated a fee of $32.5 million from the counterparty. However, upon dissolution of the SPAC, the sponsor has announced that it plans to keep the fee for itself rather than distribute it to the SPAC’s stockholders. The action seeks, among other things, an injunction preventing distribution of the break-up fee to the sponsor and requiring the sponsor to distribute the SPAC’s net assets to investors.
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