Ask HN: Sue after poorly managed SPAC?
by spac_throwawayy on Hacker News.
I’m a former employee of a company which recently went public through a SPAC. I had no lockup but communication from the company and setup were extremely poor so I was not able to sell my stock immediately. Accounts weren’t set up in advance. Tax info wasn’t in accounts. It was impossible to sell in the first week for everyone. Most people didn’t get access to shares for weeks. The price went down significantly in that time. Should I sue for some sort of damages? Maybe negligence or fiduciary duty? (Could have even been intentionally but I have no proof.) Should we sue as a class or individuals? One law firm is interested in the case if class damages are over $10M (they are). My damages are ~$1M which seems to be on the bubble for suing as an individual. Either way, I’m not sure the potential downsides. From past examples I assume the company will make the case very hard for us and try to bleed us dry. Seems like it could also have negative career implications.