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Special Opportunities Fund updates on FAST lawsuit settlement

Published 06/05/2024, 22:14
SPE
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SADDLE BROOK, N.J. - Special Opportunities Fund, Inc. (NYSE: SPE), an SEC-registered closed-end investment company, has announced an update on the settlement of a class action lawsuit concerning FAST Acquisition Corp. This legal action was settled in the Delaware Court of Chancery, with a gross cash payment of $12.5 million approved for distribution to former shareholders of FAST's class A common stock who held shares as of August 25, 2022.

As of today, the Special Opportunities Fund expects the net settlement distribution per share to exceed $0.50 after expenses, based on discussions with the settlement administrator. The distribution process is anticipated to be completed by June 30, 2024. Class members are not required to take any action to receive their portion of the settlement.

This lawsuit settlement is part of the Special Opportunities Fund's broader strategy to employ activist measures, including litigation, to enhance the value of its investments. The fund is managed by Bulldog Investors, LLP, an SEC-registered investment adviser that also manages separately managed accounts.

InvestingPro Insights

The Special Opportunities Fund, Inc. (NYSE: SPE) has recently made headlines with its settlement announcement, reflecting its commitment to leveraging activist strategies for shareholder value. The fund's management by Bulldog Investors, LLP underscores a proactive approach to investment, which is also mirrored in its financial data and performance metrics.

With a market capitalization of $137.52 million, SPE has demonstrated a robust financial position. The fund's price-to-earnings (P/E) ratio stands at 5.46, suggesting that its shares could be attractively priced relative to its earnings. Notably, SPE has been profitable over the last twelve months, a reassuring sign for investors looking for stable returns.

InvestingPro Tips highlight that SPE pays a significant dividend to shareholders, currently boasting a dividend yield of 9.17%. This is a testament to the fund's ability to generate income for its investors, which has been consistent for over three decades, as SPE has maintained dividend payments for 32 consecutive years. Moreover, the stock is trading near its 52-week high, at 98.11% of this peak value, indicating strong market confidence in the fund.

Investors interested in the Special Opportunities Fund's financial health and future prospects can find additional InvestingPro Tips by visiting https://www.investing.com/pro/SPE. With more tips available on the platform, users can gain a deeper understanding of SPE's investment potential. Remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights into the fund's performance and strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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