Ackman SPAC hit with investor suit questioning its legality

Ackman denied the suit’s claims in an emailed statement. “PSTH has never held investment securities that would require it to be registered under the Act, and does not intend to do so in the future,” Ackman said. “We believe this litigation is totally without merit.”

NEW YORK: The largest special-purpose acquisition company (SPAC) to ever hit the market is operating illegally as an investment company, a new lawsuit against billionaire Bill Ackman’s Pershing Square Tontine Holdings Ltd (PSTH) claims.

Less than a month after the blank-cheque company abandoned plans for a deal with Universal Music Group, it’s facing a civil suit from a shareholder claiming that it fitted the description of an investment company and should be regulated as one, starting with the “staggering” compensation paid to Pershing Square Capital Management as investment adviser.