Dune Acquisition Corporation (NASDAQ: DUNE) announced in an 8-K this afternoon that it has settled its lawsuit with equities trading platform TradeZero and mutually terminated its combination agreement.
As a refresher, Dune launched a lawsuit against its combination partner TradeZero in April 2022 claiming that its target, “fraudulently induced” it into entering the merger and “materially breached” that agreement, causing “irreparable injury” to the SPAC. Dune’s board of directors then advised shareholders to vote against the deal.
However, the deal was officially terminated on December 28, and the parties agreed to a mutual release of all claims related to the merger, the transactions, and the lawsuit filed by the Plaintiffs against Defendants in the Delaware Court of Chancery, in each case effective upon receipt in full of the “settlement consideration”.
As part of the settlement, TradeZero will pay Dune $5 million within 15 business days of the date of the agreement. The settlement agreement acknowledges that the parties admit no liability or wrongdoing whatsoever and contains a covenant not to sue.
Following the termination of the merger, Dune will continue its search for an alternative business combination. The SPAC’s shareholders extended the company’s liquidation date in a meeting held in June to allow Dune until December 22, 2023 to complete a business combination.
Dune originally inked the $556 million deal with TradeZero in October 2021. New York City-based TradeZero provides a digital equity trading and investment platform targeted at professional day traders.