Cadwalader represented the independent directors of VectoIQ Acquisition Corp., the special purpose acquisition company that took electric-vehicle company Nikola Corp. public in 2020, in derivative and class action litigation in the Delaware Court of Chancery arising from Nikola's SPAC merger and subsequent fraud allegations.
The litigation involved overlapping derivative and class claims alleging merger-related breaches of fiduciary duty, securities fraud, and insider trading against directors and officers of Nikola Corp. and VectoIQ Acquisition Corp., and proceeded in parallel with criminal and regulatory proceedings and securities class action litigation concerning Nikola's former founder and chairman and Nikola Corp.'s later Chapter 11 filing.
In 2024, the Cadwalader team obtained dismissal of all derivative claims asserted against its VectoIQ director clients, a key development that helped pave the way for a global resolution. In November 2025, the Court of Chancery granted final approval of settlements totaling more than $33 million in cash consideration and related fee awards, which the court described as "far more than fair" in light of the risks of continued litigation and the constraints of the Chapter 11 process.
The Cadwalader team representing the independent VectoIQ directors in litigation was led by partner Adam Magid. Steve Fraidin and Pete Bariso provided corporate guidance, and Casey Servais and Ray Navaro provided additional support in connection with Nikola's Chapter 11 process.