SAN DIEGO, Oct. 05, 2023 (GLOBE NEWSWIRE) — Shareholder rights law firm Robbins LLP is investigating EQRx, Inc. (NASDAQ: EQRX) to determine whether certain EQRx officers and directors violated securities laws and breached fiduciary duties to shareholders.
If you would like more information about our investigation of EQRx’s misconduct, click here.
EQRx, Inc. (EQRX) May Have Engaged in a Conflicted SPAC Process
EQRx International, Inc. completed a business combination with CM Life Sciences III Inc. on December 17, 2021, and now operates as EQRx, Inc. This week, Corvex Management LP agreed to pay the SEC $1 million to settle allegations that the investment advisor did not properly disclose conflicts of interests involving certain SPACs.
The SEC alleged that from July 2020 through January 2021, Corvex personnel were involved in forming three SPACs know as CM Life Sciences Inc., CM Life Sciences II Inc., and CM Life Sciences III Inc. (now EQRx, Inc.). Individuals supervised by Corvex owned about half of the sponsors of the three SPACs. Because of their ownership interests, Corvex personnel were entitled to receive a portion of the SPAC sponsor compensation once the SPACs completed their business combinations. The SEC alleged that Corvex personnel thus had financial incentives to push the firm’s advisory clients to make SPAC-related investments to ensure the three SPACs completed business combinations.
The agency said that Corvex caused its advisory clients to participate in $122.5 million worth of private investment in public equity transactions, or PIPE transactions, in connection with the three SPACs’ ultimate business combinations. Corvex didn’t disclose the conflicts of interest April 2021 — after the three SPACs had consummated their initial public offerings.
Corvex founder Keith A. Meister and CM Life Sciences Holdings, the sponsor of one of the SPACs mentioned in the SEC’s order, were hit with an investor suit in February in Delaware Chancery Court, alleging they made misleading disclosures in the lead-up to the take-public merger and immediate value plunge of clinical data and genomics company Sema4 Holdings in July 2021.
What Now: EQRx, Inc. shareholders have legal options. If you own shares of EQRx or have incurred a recent significant loss in the stock, contact us for more information about your rights.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas, Jr.
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against EQRx, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.
| Contact: Aaron Dumas Robbins LLP 5060 Shoreham Pl., Ste. 300 San Diego, CA 92122 adumas@robbinsllp.com (800) 350-6003 www.robbinsllp.com | https://www.facebook.com/RobbinsLLP/ https://www.linkedin.com/company/robbins-llp/ |
