On July 24, 2025, Vice Chancellor Nathan A. Cook of the Delaware Court of Chancery approved a $12,750,000 settlement secured by Wolf Popper LLP and other counsel for the benefit of former stockholders of special purpose acquisition company Fusion Acquisition Corp., now renamed MoneyLion Inc. (NYSE: ML). Following a hearing, the Vice Chancellor stated that the settlement reflected an "excellent" and "extremely positive" result for the class and that he had "every reason to approve" it. Among other things, the Vice Chancellor found that counsel "skillfully and vigorously litigated" the lawsuit on behalf of stockholders and that the $12.75 million settlement amount ranked among the highest recoveries when compared to class actions challenging similar transactions.
The action arises from Fusion's September 2021 "de-SPAC" merger with MoneyLion, a digital financial technology business. Shares of MoneyLion plummeted following completion of the merger. The class action complaint followed extensive investigation into MoneyLion's and Fusion's corporate books and records and alleged that Fusion's directors and executive officers and its sponsor (the "Fusion defendants") labored under conflicts of interest incentivizing them to merge with MoneyLion, even if value-destructive to Fusion's public stockholders. Plaintiffs asserted, among other things, that the Fusion defendants, aided and abetted by MoneyLion's CEO and co-founder Diwakar (Dee) Choubey and MoneyLion's financial advisor, Broadhaven Capital Partners, LLC, breached their fiduciary duties when disseminating a false and misleading proxy statement that discouraged Fusion stockholders from redeeming their shares. At the hearing, Vice Chancellor Cook remarked that the facts, as alleged by plaintiffs, "reflect a poster-child scenario for the problems and malincentives associated with the de-SPAC form."
Class members must submit a Proof of Claim and Release (available on the settlement website, https://moneylionstockholdersettlement.com/) by September 2, 2025, in order to maximize their recovery potential from the settlement.
Additional information, including the class definition, is available on the settlement website.
The now-resolved case is Martel et al. v. Fusion Sponsor LLC et al., case number 2024-0329-NAC, in the Delaware Court of Chancery.