Romeo Power, Inc. (acquired by Nikola Corporation)
Robbins LLP served as co-lead counsel for the class of RMG Acquisition stockholders who were entitled to redeem their stock in connection with the merger between RMG Acquisition Corp., a SPAC, and Romeo Systems, Inc., a privately held company purportedly engaged in the design and manufacture of lithium-ion battery modules and packs for commercial electric vehicles. The stockholders claimed that defendants breached their fiduciary duties by issuing a misleading proxy that impaired their decision on whether to redeem their RMG Acquisition Corp. stock when it merged with Romeo Systems, Inc. Post-merger, Romeo revealed that it had overstated its revenue projections and understated its backlog projections. The Company was ultimately acquired by Nikola Corporation in a stock-for-stock transaction that valued Romeo at $144 million ($0.74 a share). After engaging in extensive discovery, the parties reached a settlement that resulted in plaintiff securing a $11.99 million settlement for the class, nearly 100% of the damages.
Yu v. RMG Sponsor, LLC, et al., C.A. No. 2021-0932-NAC (Del. Ch. Oct. 18, 2024)
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