Bill Ackman, CEO and Portfolio Manager, Pershing Square Capital Management, at the 2015 Delivering Alpha on July 15, 2015
that made a failed bid to invest in Universal Music Group earlier this year -- is now fighting back against aIn a motion filed in federal court Thursday that aims to dismiss the case, PSTH argues the lawsuit is “fatally flawed” and based on a “fundamentally mistaken” understanding of such companies -- a trendy investment vehicle that has boomed in popularity but drawn scrutiny from regulators and critics.
SPACs typically function like reverse initial public offerings: They raise money as a public shell company ahead of time, and then use those funds to acquire a private company and thus take it public. But PSTH took a slightly different route, using the money it had raised from investors in an effort to buy shares of UMG.