Vector Acquisition Faces a Lawsuit About its Merge Deal with Rocket Lab12th Jul 2021
As Rocket Lab is getting ready to merge with Vector Acquisition to complete its listing on the United States NASDAQ exchange, three law firms from New York consider filing a lawsuit against Vector. According to Monteverde & Associates and Rigrodsky Law, Vector Acquisition might have violated its fiduciary duties while merging with Rocket Lab.
Rocket Lab Response to a Potential Lawsuit
According to Rocket Lab spokesperson Morgan Bailey, the litigation threats do not target Rocket Lab directly and are a part of standard US share market transactions. She believes that the development will not interfere with the company’s plans and will not delay its initial public offering (IPO). If everything goes according to plan, a hundred young Rocket Lab employees will become millionaires – at least, on paper.
Rocket Lab NASDAQ exchange listing is valued at $4.5 billion. Rocket Lab founder, Peter Beck, will retain at least a 12.2% stake at his company if the deal goes smoothly. Based on current market capitalisation, this share should reach $545 million. Morgan adds that all 400 company employees will benefit from the deal. At least a hundred Rocket Lab staff members will become millionaires once the transaction is through.
Besides, Rocket Lab will be reserving 59,875,000 shares worth a total of $599 million for an equity incentive programme. On average, this will give every company employee around $1 million USD.
Monteverde & Associates and Rigrodsky Law Concerns
On the other hand, Monteverde has concerns about the actual value of the upcoming transaction. The three law firms considering a potential lawsuit specialise in high-class cases and are determined to examine whether Vector Acquisition is acting on a ‘no win, no fee’ basis. Still, given how quickly Rocket Lab progresses in the launch market, there is reason to believe the deal will go as planned.