Trend or blip? Shareholders sue SPAC sponsors over busted deal breakup fees (Reuters)

Covered by Reuters

Morris Kandinov LLP represents stockholders in cases involving Concord Acquisition and FAST Acquisition, two SPACs that each obtained a break-up fee following failed business combinations. In both cases, the SPAC sponsor has announced an intent to distribute the break-up fee to itself rather than stockholders. Reuters is covering the two cases. Aaron Morris is quoted in the article as stating that “although shareholders’ entitlement to breakup fees has not previously been litigated in the context of a SPAC, it is well established that a busted merger fee belongs to the corporation.”

By MoKa

Contact Aaron Morris for additional information regarding the case at