Jakubiak V. Quantumscape Corporation Et Al

Case Background

On December 22, 2020, a securities fraud complaint was filed against QuantumScape Corporation before the United States District Court, New York Southern (Foley Square) alleging breach of contract and common law fraud. On January 21, 2022, Plaintiffs Jeffrey Jakubiak, Michael Assante, John Wilschke, Headwaters Holdings LLC, BJI Financial Group Inc., and Brian Walsh (referred to as "Plaintiffs") filed their consolidated amended complaint. They did this through their undersigned attorneys, following the Court's order dated January 14, 2022. This case was assigned to Judge Margaret M. Garnett and referred to Magistrate Judge Jennifer E. Willis. [Case number: 1:20cv10842]

Cause

Kensington Capital, a SPAC, was founded on April 27, 2020, to merge with automotive businesses. It conducted an IPO on June 30, 2020, offering 23 million units at $10 each, raising $230 million. Each unit included one share of Class A common stock and half a warrant to purchase shares at $11.50. The units began trading separately about 52 days later. Advised by Hughes Hubbard & Reed LLP and UBS Securities LLC, Kensington held IPO proceeds in trust with Continental Stock Transfer & Trust Company. The funds would be returned to shareholders if a merger did not o