MoKa Seeks Preliminary Approval Of $13 Million Settlement In Pioneer Merger Corp. Litigation

Lead plaintiff Funicular Funds, LP and lead counsel Morris Kandinov filed a motion for preliminary approval of a $13 million settlement of claims arising from the liquidation of Pioneer Merger Corp., a special purpose acquisition company (SPAC). The amount equates to approximately $0.36 per share before expenses. The dispute arose from a cash termination fee paid by a counterparty in a broken deal with the SPAC. When the SPAC failed to find a replacement transaction, it announced that it would wind down and distribute only the amount held in its trust account to Class A common stockholders. The SPAC’s residual assets, i.e., the remaining cash from the termination fee, would be distributed solely to its Class B common stockholders, which consisted of the SPAC’s sponsor and other insiders.

By MoKa

Funicular Funds, LP filed litigation asserting breach of fiduciary duty and contract claims to protect the interests of Class A stockholders. The settlement obtains approximately 65% of remaining cash for distribution to Class A stockholders. The District Court has scheduled a hearing on preliminary approval for March 5, 2024.

The litigation is Funicular Funds, LP v. Pioneer Merger Corp., et al., No. 22-10986-JSR. Contact Aaron Morris for additional information.