The sponsor, directors and executives of E.Merge Technology Acquisition Corp. were hit with a securities class action Friday in New York Southern District Court. The suit contends that the special purpose acquisition company qualifies as an investment company under the Investment Company Act of 1940 and that its capital structure, operations, and compensation scheme violate the statute. The suit, part of a new line of cases challenging SPACs, is backed by Susman Godfrey and Bernstein Litowitz Berger & Grossman as well as former SEC commissioner Robert Jackson and Yale law professor John Morley. Counsel have not yet appeared for the defendants. The case is 1:21-cv-07072, Assad v. E.Merge Technology Acquisition Corp. et al.
New York
August 22, 2021, 1:56 AM