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GGPI.US

id: 2223

Gores Guggenheim 25M Settlement

Late claims are being considered for compensation, subject to approval.

$25,000,000

Cash Settlement

Delaware court of Chancery

Court

2023-0863-LWW

Case number

09/27/2021

Class period Start

06/23/2022

Class period End

06/17/2026

Claim deadline

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.

Case Type

US Securities Class Action

Case Status

Accepting Late Claims

Alleged Offence

Mismanagement,

Failure to Disclose,

Breach of Fiduciary duty

Suspected Party

Shareholder

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.1

Plaintiffs

Terry May, Elizabeth May, Virgil Ecoffey, Terry Jandreau

Attorneys

Grant & Eisenhofer P.A.

Defendants

Alec E. Gores, Andrew M. Rosenfield, Mark R. Stone, Andrew McBride, Randall Bort, Elizabeth Marcellino, Nancy Tellem

Administrator

A.B. Data Ltd

Court hearing date

05/18/2026

Objection deadline

04/27/2026

Hearing deadline

04/27/2026

Attorney fee

$6,250,000

Trades matching type

FIFO

Gores Guggenheim 25M Settlement

Frequently Asked Questions