| SPAC Merger With Battery
Company in 2020 Triggered Trial
Now Quiet Settlement in SDNY
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
April 26 – Kensington Capital
was formed as a SPAC in 2020,
with a focus on the automotive
sector.
In September 2020
it entered into an agreement
to combine with QuantumScape
Corporation, a make of lithium
batteries for electric
vehicles.
A dispute
arose about the exercise of
warrants, and a lawsuit was
filed, then removed to the
U.S. District Court for the
Southern District of New York.
On March
14, 2024 still relatively new
SDNY District Judge Margaret
M. Garnett convened the
parties to rule on motions in
limine and Daubert (expert)
motions, and to ask them
questions. Inner City Press
was there, the only media in
the courtroom.
Professor
Merritt Fox, she ruled, will
not be allowed to opine if
disclosures were correct or
misleading. She surmised that
at the upcoming trial, it will
probably not end up being
disputed that the plaintiffs
were and are sophisticated
investors.
Defense
counsel asked if the trial
would be in Judge Garnett's 40
Foley Square courtroom -
previously that of now 2d
Circuit Judge Nathan - or in
the ceremonial courtroom in
500 Pearl Street. (That is
reserved for the 9/11 cases,
and celebrations of long time
judges).
Judge
Garnett said she didn't think
there'd be that much media
interest in the case, though,
she said, she saw a familiar
face in the gallery.
Jump cut to April
26: "STIPULATION AND ORDER OF
VOLUNTARY DISMISSAL: The
Court, having considered the
Stipulation of Voluntary
Dismissal, now, therefore, IT
IS HEREBY ORDERED that, while
the Court retains jurisdiction
over the parties if needed to
enforce the terms of the
parties' settlement agreement,
all claims in the
above-captioned actions
against Defendant QuantumScape
Corporation be and hereby are
dismissed with prejudice,
without costs or fees to any
party. The Order at ECF No.
203 regarding Rule 50(b)
motion practice is hereby
vacated without a resolution
of the merits of those
motions. The Clerk of the
Court is respectfully directed
to terminate the
above-captioned actions with
no judgment being entered
against any party. SO ORDERED.
(Signed by Judge Margaret M.
Garnett on 4/26/2024)."
This is Jakubiak
v. QuantumScape Corporation.
et al., 20-cv-10842 (Garnett)
***
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