The Latest SPAC News and Rumors: March 31, 2023
by Marlena Haddad on 2023-03-31 at 11:39am

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. 

Latest SPAC News:  Shares of Digital World jump after Trump’s indictment, and pair of Delaware Chancery court decisions deny motions to dismiss SPAC shareholder’s fiduciary breach claims


Trump-Tied SPAC’s Shares Jump After Historic New York Charge

The criminal case against Donald Trump is providing a lift to the blank-check firm taking his media company public, as well as other stocks tied to the former president, as traders bet the news will drive traffic to conservative outlets.

Digital World Acquisition Corp.(NASDAQ:DWAC), the special-purpose acquisition company merging with Trump Media, rallied as much as 10%. Meanwhile, Phunware Inc.(NASDAQ:PHUN), a software company that worked on Trump’s 2020 reelection campaign, gained as much as 5.6% and Rumble Inc.(NASDAQ:RUM), the Peter Thiel-backed conservative video network, climbed as much as 11% after reporting results.

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Pair of Delaware Chancery Court Decisions Deny Motions To Dismiss SPAC Shareholder’s Fiduciary Breach Claims, Following MultiPlan

On January 4, 2023, and again on March 1, 2023, Vice Chancellor Lori Will of the Delaware Court of Chancery denied motions to dismiss claims against directors and controlling shareholders of GigCapital-affiliated special purpose acquisition companies (“SPACs”) for alleged fiduciary duty breaches. Delman v. Gigacquisitions3, LLC, et. al., C.A. No. 2021-0679-LWW (Del. Ct. Ch. Jan. 4, 2023) (“Gigacquisitions3”); Laidlaw v. Gigacquisitions2, LLC, et. al., C.A. No. 2021-0821-LWW (Del. Ct. Ch. Mar. 1, 2023) (“Gigacquisitions2”).

In the second of the two decisions, Gigacquisitions2, the Court noted that the “legal theories presented and defendants named are largely indistinguishable” between the two cases.

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