Gores Guggenheim 25M Settlement
Gores Guggenheim and its sponsor and directors have agreed to pay $25 million to settle claims that they impaired public stockholders' right to make an informed redemption decision ahead of the company's merger with Polestar.
Outline:
Gores Guggenheim (GGI), a special purpose acquisition company, merged with Legacy Polestar on June 23, 2022, becoming Polestar Automotive Holding UK PLC. Stockholders alleged that GGI's directors and sponsor-affiliated defendants caused the company to make materially false and misleading statements about the merger's benefits and impaired stockholders' ability to make an informed decision about redeeming their shares before the deal closed. The parties reached a $25,000,000 settlement.
Timeline:
March 25, 2021: GGI completes its IPO of 80,000,000 units at $10.00 per unit, raising $800 million.
September 27, 2021: GGI announces the merger agreement with Legacy Polestar.
May 5, 2022: GGI files and mails its merger proxy statement, setting a redemption deadline of June 17, 2022.
June 22, 2022: GGI stockholders vote to approve the merger.
June 23, 2022: The merger closes; GGI becomes Polestar.
February 20, 2026: Parties execute the Stipulation and Agreement of Settlement, Compromise, and Release for $25,000,000.
Background:
GGI was a special purpose acquisition company that raised $800 million in its March 2021 IPO, with funds held in trust for public stockholders who retained the right to redeem their shares at a pro rata portion of the trust before any business combination. On September 27, 2021, GGI announced a merger agreement with Legacy Polestar entities that would ultimately create Polestar Automotive Holding UK PLC.
Plaintiffs alleged that GGI's directors and officers, along with its sponsor-affiliated entities, were obligated to give stockholders all material information relevant to their redemption decision, and that they instead caused GGI to make materially false and misleading statements about the merger's benefits in the proxy materials mailed ahead of the June 17, 2022 redemption deadline.
Plaintiffs alleged this discouraged stockholders from redeeming their shares before the merger closed on June 23, 2022. Defendants have denied all allegations of wrongdoing, breach of duty, or damages, and maintain their conduct was proper and in stockholders' best interests at all times.
Following discovery between January 2024 and June 2025, and a mediation session in September 2024 that did not immediately resolve the case, the parties reached an agreement in principle in June 2025 and executed a formal Stipulation on February 20, 2026, providing for a $25,000,000 cash settlement funded by the company and/or its insurance carriers.
The Court entered a scheduling order on March 5, 2026, directing that notice be sent to the class and setting a Settlement Hearing for May 18, 2026, to consider final approval of the settlement, the proposed plan of allocation, and Plaintiffs' Counsel's fee request (not to exceed 25% of the settlement amount).
What Can Investors Expect Now?
Gores Guggenheim and its sponsor and directors have agreed to pay $25 million to settle claims that they impaired public stockholders' right to make an informed redemption decision ahead of the company's merger with Polestar.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
ALL RECORD AND BENEFICIAL HOLDERS OF GORES GUGGENHEIM, INC. (“GGI”) CLASS A COMMON STOCK (INCLUDING, FOR THE AVOIDANCE OF DOUBT, ANY SHARES OF GGI CLASS A COMMON STOCK HELD AS PART OF A PUBLIC UNIT) WHO PURCHASED, ACQUIRED, OR HELD SUCH SECURITIES AT ANY TIME FROM SEPTEMBER 27, 2021, THE DATE OF THE ANNOUNCEMENT OF THE MERGER, THROUGH AND INCLUDING JUNE 23, 2022, THE DATE OF THE CLOSING.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.10 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.40 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.