Sagaliam SPAC Investors Can Proceed With Lawsuit to Wind It Down

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Two investment funds successfully stated a claim for a declaration that a deadline for their blank-check company to complete a merger has passed and it must wind down, a federal court ruled.

The funds sued the special purpose acquisition company, Sagaliam Acquision Corp., in November 2023 when it was contemplating a merger with drugmaker Enzolytics Inc., and soon succeeded in getting a preliminary injunction to stop a vote to extend the deadline.

Two other claims remain on the table and one is out after Judge Richard G. Andrews’ decision for the US District Court for the District of Delaware Monday. …