Osprey BlackSky $7.5M Securities Class Action Settlement, Claim Deadline is June 19, 2026
Osprey Sponsor II LLC and several former Osprey directors and officers agreed to pay $7.5 million to settle a class action lawsuit alleging they breached their fiduciary duties and made materially false and misleading statements in connection with the business combination between Osprey Technology Acquisition Corp. and BlackSky Holdings Inc.
The lawsuit claimed those actions harmed stockholders by discouraging them from redeeming their shares before the merger closed. Investors who held Osprey Technology Corp. Class A common stock as of the close of the market on September 6, 2021, and did not redeem all of their shares may be eligible for a cash payment. The claim deadline is June 19, 2026.
Quick Facts
- Lawsuit type: Stockholder class action — breach of fiduciary duty / misleading proxy statements
- Defendants: Osprey Sponsor II LLC; former Osprey Technology Acquisition Corp. directors and officers
- Case name: In re BlackSky Technology Inc. Stockholders Litigation, Consolidated C.A. No. 2024-0478-KSJM
- Court: Court of Chancery of the State of Delaware
- Settlement status: Proposed (pending final approval)
- Settlement amount: $7,500,000
- Who may be affected: Record and beneficial holders of Osprey Class A common stock as of the close of the market on September 6, 2021, who did not redeem all of their shares
- Fairness hearing: April 17, 2026
- Claim deadline: June 19, 2026
- Official settlement website: OspreyStockholderSettlement.com
- Administrator: A.B. Data Ltd.
Current Status & What Happens Next
The settlement is currently open for claims. Here is what is happening now and what comes next:
- Claims open now — eligible class members may file online or by mail
- Fairness hearing: April 17, 2026 — the court will consider whether to grant final approval
- Claim deadline: June 19, 2026
- Payments: The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.
Important — this is a non-opt-out class: The class is certified solely for settlement purposes and is a non-opt-out class under Delaware Court of Chancery Rules 23(a), 23(b)(1) and 23(b)(2), meaning class members cannot exclude themselves from the settlement. If you are a class member, you are bound by the settlement whether you file a claim or not.
What the Lawsuit Alleges
Osprey Technology Acquisition Corp. (NYSE: SFTW) was a special purpose acquisition company established as a collaboration between investment firms HEPCO Capital Management and JANA Partners, formed to merge with a transformative software or technology business.
In September 2021, Osprey completed its business combination with BlackSky Holdings Inc., a real-time geospatial intelligence and monitoring platform. The combined company was renamed BlackSky Technology Inc. and began trading on the NYSE under the ticker symbol “BKSY.” Upon closing, the combined company received approximately $283 million in gross proceeds, comprised of approximately $103 million in cash held in trust and the proceeds of a $180 million PIPE.
The class action lawsuit alleged that Osprey’s directors, officers, and sponsor breached their fiduciary duties and made false and misleading statements in connection with the business combination with BlackSky Holdings Inc. Plaintiffs claimed these actions harmed stockholders by discouraging them from redeeming their shares.
After the merger closed, BlackSky announced that it missed the forecast in the merger proxy for full-year net profit by roughly $200 million. The stock price declined by over 85% following the merger.
All defendants deny any wrongdoing. They agreed to settle to avoid the costs, risks, and delays of continued litigation.
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Who Could Be Included
The settlement class includes all record and beneficial holders of Osprey Technology Corp. Class A common stock who held shares as of the close of the market on September 6, 2021, and did not redeem all of them in connection with the merger. This includes shares held as part of public units and successors-in-interest who obtained shares by operation of law.
Additional eligibility details:
- Both individuals and entities can be class members.
- The actual beneficial holder or a legal representative must submit the claim. All joint holders must sign the claim form.
- Executors, administrators, guardians, conservators, and trustees may submit claims on behalf of others and must provide proof of authority.
- Class members whose recognized claim calculates to less than $10 will not receive a payout.
Settlement Details
Total Fund
The total settlement fund is $7,500,000. It covers the following:
- Attorneys’ fees and expenses: Up to $1,500,000
- Service awards to lead plaintiffs: Up to $10,000 total
- Payments to eligible class members: The remainder of the fund after fees, costs, and service awards
How Much Could You Receive?
The amount each class member receives depends on the number of valid claims submitted, the number of shares held as of September 6, 2021, that they did not redeem, what happened to those shares after September 6, 2021, and the total recognized claims of all claimants.
The settlement administrator calculates payouts using a court-approved plan of allocation with different formulas based on what happened to shares:
- For shares not redeemed that were sold before the merger closed or converted to New BlackSky stock and sold before May 7, 2024, at a price below $10: the recognized claim equals the $10.05 redemption price minus the sale price, plus a $0.10 base amount.
- For those same shares sold at a price of $10 or greater: the recognized claim is the $0.10 base amount only.
- For shares converted to New BlackSky stock and still held as of the close of the market on May 7, 2024: the recognized claim is $8.78 (calculated as the $10.05 redemption price minus $1.27, the closing New BlackSky stock price on May 7, 2024), plus the $0.10 base amount, for a total of $8.88 per share.
- For shares that were redeemed in connection with the merger: the recognized claim is $0.
Proof Required
All class members must provide the last four digits of their Social Security number or taxpayer identification number, along with holdings and transaction information including: number of shares held as of September 6, 2021; trade dates for purchases and sales from September 6, 2021, through May 7, 2024; number of shares purchased, acquired, or sold; total purchase, sale, or acquisition price; and number of shares held as of May 7, 2024, if applicable.
Acceptable documentation includes broker confirmation slips, broker account statements, or authorized statements from a broker, financial advisor, or financial institution containing the relevant transactional information.
How to File a Claim
- Online: claimform.ospreystockholdersettlement.com
- By mail: Download the PDF claim form at OspreyStockholderSettlement.com and mail to:
Osprey Stockholder Litigation c/o A.B. Data Ltd. P.O. Box 173139 Milwaukee, WI 53217
- Phone: 1-877-580-7498
- Email: [email protected]
- Deadline: June 19, 2026
Payout Options
Payments will be issued by check or electronic payment.
Prior Cases / Context
The Osprey–BlackSky litigation is part of a broader wave of SPAC-related class actions that surged following the 2020–2021 de-SPAC boom. Breach of fiduciary duty suits — in which plaintiffs argue that the structure of a SPAC creates a conflict of interest between the sponsor, the board, and investors — have become one of the most common types of SPAC litigation.
Osprey’s board had faced scrutiny as early as February 2021, when law firms began investigating whether the board had breached its fiduciary duties to shareholders by failing to conduct a fair process in connection with the merger, including concerns about the dilution of Osprey shareholders’ ownership interest in the combined company.
Delaware’s Court of Chancery has become the primary venue for such SPAC-related litigation, given that most SPACs are incorporated in Delaware and therefore subject to its strict fiduciary standards.
Frequently Asked Questions
Is the Osprey–BlackSky lawsuit a class action?
Yes. In re BlackSky Technology Inc. Stockholders Litigation is a consolidated stockholder class action pending in the Delaware Court of Chancery. The class covers all record and beneficial holders of Osprey Technology Corp. Class A common stock who held shares as of the close of the market on September 6, 2021, and did not redeem all of them.
Has the settlement been approved?
The settlement is currently open for claims, with a fairness hearing scheduled for April 17, 2026. Final approval depends on the outcome of that hearing and resolution of any appeals.
Can I opt out of the settlement?
No. This is a non-opt-out class under Delaware Court of Chancery Rules 23(a), 23(b)(1) and 23(b)(2). Class members cannot exclude themselves from the settlement.
What is the claim deadline?
The deadline to file a claim is June 19, 2026, whether submitted online or postmarked by that date.
Do I need proof to file a claim?
Yes. Class members must provide holdings and transaction documentation, such as broker confirmation slips or account statements, to support their claims.
Where is the official settlement website?
The official settlement website is OspreyStockholderSettlement.com, maintained by the settlement administrator and supervised by plaintiff’s counsel.
What happens if I do nothing?
If you do nothing and are a class member, you will receive no payment. Because this is a non-opt-out class, you will still be bound by the settlement and release your claims against the defendants.
When will payments be issued?
The settlement administrator will issue payments after processing all claims and after the court resolves any appeals and grants final approval of the settlement.
Additional Context
The Osprey–BlackSky case reflects the ongoing scrutiny of the SPAC merger model, which saw a dramatic rise in popularity between 2020 and 2022. Critics and plaintiffs in numerous cases have argued that SPAC sponsors — who typically receive a significant equity stake at little to no cost — have an inherent incentive to complete a deal regardless of whether it serves public investors’ best interests.
Delaware courts have increasingly been willing to evaluate SPAC transactions under heightened fiduciary standards, particularly when sponsor conflicts of interest are present. This settlement is one of several notable resolutions in this space, offering partial compensation to investors who held shares through the merger period and experienced significant losses as the combined company’s stock declined.
Last Updated: March 6, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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