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EQRX.US

id: 1842

CM Life Sciences III (CMLS III) now EQRx ($EQRx) $7.25M Investor Settlement

Eligible claimants can submit their claims for compensation.

$7,250,000

Cash Settlement

Delaware court of Chancery

Court

2024-1268-PAF

Case number

12/14/2021

Class period Start

12/17/2021

Class period End

05/24/2026

Claim deadline

CM Life Sciences III (“CMLS III”) now EQRx, (“New EQRx”) has agreed to a $7.25M settlement with former CMLS III Class A stockholders to resolve claims related to an alleged impairment of stockholders’ redemption rights in connection with the CMLS III–Legacy EQRx merger.

Outline:

In April 2021, CM Life Sciences III (CMLS III) completed its IPO. In August 2021, CMLS III announced a merger deal with Legacy EQRx. Investors later alleged the company made misleading statements about the deal that dissuaded stockholders from redeeming, and filed a lawsuit. In January 2026, they finalized a $7.25M settlement.

Timeline
January 25, 2021: CMLS III incorporated as a SPAC.
April 9, 2021: CMLS III IPO at $10.00/unit, gross proceeds $552 million; funds placed in trust with redemption features for public stockholders.
August 5, 2021: CMLS III enters business combination agreement with Legacy EQRx.
December 1, 2021: CMLS III files a definitive proxy for the merger and sets a redemption deadline.
December 16, 2021: Stockholders vote to approve the merger at the special meeting.
December 17, 2021: Merger closes; CMLS III renamed EQRx, Inc. (“New EQRx”).
December 9, 2024: Investors file the class action 
May 24, 2026: Deadline to Summit a Claim
Background

CMLS III was a special purpose acquisition company (SPAC) formed to pursue a business combination and take a private company public.

In its IPO, CMLS III raised proceeds that were placed into a trust account for public stockholders.

Under the SPAC structure, public holders generally had the right to redeem their Class A shares for cash at a pro rata portion of the trust in connection with certain events—most notably a stockholder vote on a proposed merger.

In 2021, CMLS III presented investors with this framework of a trust-backed investment and redemption rights tied to the merger process.

As CMLS III moved toward a proposed merger with Legacy EQRx, it disseminated a proxy statement describing how the merger vote would work and setting a redemption deadline of 5:00 PM ET on December 14, 2021 for stockholders seeking to redeem in connection with the transaction.

Investors allege that defendants made materially false or misleading statements about the proposed business combination, and that this conduct dissuaded stockholders from redeeming—thereby harming investors who otherwise would have taken cash out of the trust.

The lawsuit includes claims such as breach of fiduciary duty, tied to allegations that redemption rights were effectively impaired in connection with the merger (along with related claims).

After the redemption deadline passed and the merger closed, stockholders who did not redeem held shares that were converted into New EQRx equity at closing.

In the settlement materials’ allocation framework, a common comparison point is the SPAC-era $10.00 redemption value versus later market prices for New EQRx—such as $2.34 (the closing stock price on November 9, 2023) for certain holders who kept their shares through that date.

Shareholders ultimately filed the Delaware Chancery action claiming CMLS III-related defendants and others misled stockholders about the merger and the practical value of redemption, allegedly leaving non-redeeming investors exposed to significant post-closing losses.

What Can Investors Expect Now?

CM Life Sciences III (“CMLS III”) now EQRx, (“New EQRx”) has agreed to a $7.25M settlement with former CMLS III Class A stockholders to resolve claims related to an alleged impairment of stockholders’ redemption rights in connection with the CMLS III–Legacy EQRx merger.

If you were damaged due to this situation, you may be able to file for a payout and get your share of the settlement. You can check whether you are eligible and review other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Accepting Claims

Alleged Offence

Mismanagement,

Misleading Statements,

Failure to Disclose,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Lead Plaintiff Deadline

12/17/2021

Plaintiffs

Milana Nemeth ; Adam Saab.

Attorneys

Robbins Geller Rudman & Dowd LLP

Defendants

Eli D. Casdin; Keith A. Meister; Christian Henry; Kwame Owusu-Kesse; Chad Robins; Harlan Robins; Amy Abernethy; Brian Emes; Shaun Rodriguez

Administrator

JND Legal Administration

Court hearing date

04/21/2026

Objection deadline

04/07/2026

Attorney fee

$1,450,000

Trades matching type

FIFO

Frequently Asked Questions

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