A Delaware judge’s ruling last week found disturbing levels of double-dealing by the sponsors of a special-purpose acquisition company deal that bloomed, then wilted in last year’s SPAC mania.
Ader’s SPAC filed the Delaware lawsuit this year to force the merger deal on the casino—a lavish destination called the Okada Manila, that is itself the most valuable asset of the Japanese producer of pachinko pinball machines, Universal Entertainment Corp. . Critics of SPAC deals have argued that SPAC sponsors are tempted toward questionable dealings because they can launch a SPAC for just a few thousand dollars—yet realize hundreds of millions on their sponsors stock if a deal comes through.
Shares of the 26 Capital SPAC are down just 3% since Thursday’s ruling, to $11.15. In a press release, the SPAC vowed to pursue monetary damages in the Delaware case.