Settlement Proposal Announced for InterPrivate Acquisition Corp. Shareholders

Proposed Settlement for InterPrivate Acquisition Corp. Shareholders

In a significant development for investors, Robbins Geller Rudman & Dowd, alongside Robbins LLP and Grant & Eisenhofer P.A., have announced a proposed class action settlement concerning the shareholders of InterPrivate Acquisition Corp. This settlement is specifically aimed at individuals or entities who purchased or acquired InterPrivate Class A Common Stock between August 16, 2019, and March 12, 2021. Moreover, it is relevant to those who held redeemable common stock on March 9, 2021.

Overview of the Case

The lawsuit was filed in the Delaware Court of Chancery, consolidated under the case name In re InterPrivate Acquisition Corp. Stockholder Litigation, with the consolidated case number C.A. No. 2024-0221-LWW. The action centered around allegations against the defendants, who were accused of violating fiduciary duties and compromising the voting and redemption rights of InterPrivate shareholders. The claims indicated the use of false and misleading information in proxy solicitation materials, contributing to financial harm for shareholders.

Despite these serious allegations, the defendants have denied all claims and asserted that they have engaged in no misconduct.

Settlement Details

According to the proposed settlement, $14,000,000 in cash is suggested to resolve the claims associated with the class action. If this settlement is approved by the court, it is expected to provide monetary relief to the eligible shareholders. Approval hearings are scheduled for September 12, 2025, where the court will evaluate the fairness, reasonableness, and adequacy of the proposed settlement, along with the allocation plan for the settlement funds.

All members of the class are advised that their rights could be affected and that they may be entitled to a share of the proceeds from the settlement. However, to maximize recovery, a valid Proof of Claim must be submitted by September 11, 2025. This can be done by mailing the form or submitting it electronically via the designated settlement website.

Steps for Shareholders

Class members must be proactive to ensure they receive their rightful share. They are strongly encouraged to submit the Proof of Claim form, which can be found online or requested directly from the settlement administrator. Shareholders who fail to submit their claims by the deadline may find themselves unable to recover any portion of the settlement fund, as their claims could be rejected altogether.

Furthermore, individuals who want to object to the settlement, the allocation plan, or any related fees and expenses requested by the plaintiffs’ counsel must do so by filing their objections with the court no later than August 21, 2025.

Final Note

Sharing this information is crucial for shareholders who may not have received the official notice outlining their rights and the settlement process. The defendants, the court, or court clerks will not assist in inquiries, so it’s essential for class members to navigate this process independently or consult Plaintiff's Counsel for specific queries.

This proposed settlement marks a vital step in the ongoing judicial process for those affected by the alleged misconduct within InterPrivate Acquisition Corp. It is imperative for all involved to remain informed and engaged to safeguard their interests.