Bill Ackman’s troubled SPAC was hit with a lawsuit Tuesday alleging the blank-check company promised “staggering compensation” to directors and asking that the entity’s special status be revoked.
The plaintiffs — former Securities and Exchange Commission commissioner Robert Jackson and Yale law professor John Morley — claim that Pershing Square Tontine Holdings isn’t an operating company at all. Instead, they say, Ackman’s SPAC is an investment firm, just like his hedge funds. They say the SPAC should adhere to the Investment Company Act of 1940.
“By telling the world that PSTH is not an ‘Investment Company’ as that term is defined in the ICA, Defendants have structured PSTH so as to…