EV Maker Lion Electric’s SPAC Merger Hit With Investor Lawsuit

Lion Electric Co. shareholders sued the architects of its blank-check merger in Delaware on Thursday, saying they tricked investors into a lousy deal that gave insiders a windfall.

The proposed class action targets Northern Genesis Capital Group affiliates who sponsored the special purpose acquisition company that combined with the electric truck and bus maker to take it public in 2021. The lawsuit in Delaware’s Chancery Court says they were driven by lopsided incentives to push the Lion Electric merger, no matter how it might turn out.

The allegations echo dozens of other cases in the country’s premier venue for M&A ...