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Liability for SPAC Flops: Waitr Could Be Test Case for Disgruntled Investor Lawsuits


Liability for SPAC Flops: Waitr Could Be Test Case for Disgruntled Investor Lawsuits
Waitr Inc. never had the resources of rivals Grubhub Inc. and UberEats. Yet in November 2018 the online food ordering and delivery business went public through a merger with blank-check firm Landcadia Holdings Inc.
Landcadia had some powerful names behind it. Tilman Fertitta, a billionaire restaurateur, and Richard Handler, the chief executive officer of Jefferies Financial Group Inc., had raised $250 million in backing for Landcadia so that the special purpose acquisition company, or SPAC, could find and take public a promising startup like Waitr.
But Waitr turned out to be a disappointment. Its shares plummeted as it lost about 96% of its market value in 2019, down from a high of almost $1 billion. That triggered a class-action lawsuit claiming that Fertitta and Handler misled shareholders about the risks of Waitr’s business plan but pushed ahead with announcing their merger two we ....

United States , Lake Charles , David Leuschen , Chris Meaux , Lew Dickey , Chamath Palihapitiya , Los Angeles , Kevin Lacroix , Tilman Fertitta , Alta Mesa , Robert Prongay , Stanford Law School Securities Class Action Clearinghouse , Glancy Prongay Murray , Jefferies Financial Group Inc , Waitr Inc , Riverstone Holdings , Power Group , Us District Court , Goldman Sachs Global Energy , Cumulus Media Inc , Akazoo Ltd , Grubhub Inc , Hindenburg Research , Capital Hedosophia Holdings Corp , Media Acquisitions Corp , Justice Department ,

SPAC Flop Is Test Case for Disgruntled Investor Lawsuits


Since the start of 2019, 13 SPAC-related shareholder lawsuits have been filed.
Bloomberg | Feb 16, 2021
(Bloomberg) Waitr Inc. never had the resources of rivals Grubhub Inc. and UberEats. Yet in November 2018 the online food ordering and delivery business went public through a merger with blank-check firm Landcadia Holdings Inc.
Landcadia had some powerful names behind it. Tilman Fertitta, a billionaire restaurateur, and Richard Handler, the chief executive officer of Jefferies Financial Group Inc., had raised $250 million in backing for Landcadia so that the special purpose acquisition company, or SPAC, could find and take public a promising startup like Waitr.
But Waitr turned out to be a disappointment. Its shares plummeted as it lost about 96% of its market value in 2019, down from a high of almost $1 billion. That triggered a class-action lawsuit claiming that Fertitta and Handler misled shareholders about the risks of Waitr’s business plan ....

United States , Lake Charles , David Leuschen , Chris Meaux , Lew Dickey , Chamath Palihapitiya , Los Angeles , Kevin Lacroix , Tilman Fertitta , Alta Mesa , Robert Prongay , Stanford Law School Securities Class Action Clearinghouse , Glancy Prongay Murray , Jefferies Financial Group Inc , Riverstone Holdings , Power Group , Us District Court , Goldman Sachs Global Energy , Cumulus Media Inc , Akazoo Ltd , Grubhub Inc , Bloomberg Waitr Inc , Hindenburg Research , Capital Hedosophia Holdings Corp , Media Acquisitions Corp , Justice Department ,