The Ackman SPAC hit with the suit calls into question its legality

SPACs, also known as blank check companies, are empty corporate shells that collect money from investors and then aim to merge with a private business, basically leading that company through the back door.

Ackman agreed to buy a 10% stake in Universal Music from Vivendi SA in June ahead of a planned listing in Amsterdam. Due to the unusual structure of the deal, Pershing Square Tontine would acquire a stake in UMG rather than as a typical SPAC merger.