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Ackman SPAC Investors Defend It Against Fellow Shareholder's Claims

Bill Ackman

Bill Ackman

Photographer: Christopher Goodney/Bloomberg

Investors in Bill Ackman’s Pershing Square Tontine Holdings Ltd. -- some recruited through a Reddit forum -- rallied to defend the world’s largest special purpose acquisition company against claims by fellow shareholder George Assad that it was operating illegally.

A group of 62 investors holding almost 1.3 million shares filed court papers last week in support of the SPAC’s bid to dismiss a lawsuit by Assad, who sued in August after the company abandoned plans for a deal with Universal Music Group. Assad alleged that Pershing Square Tontine isn’t a SPAC and that it should be regulated under the Investment Company Act of 1940, which would require registration with the U.S. Securities and Exchange Commission.