Monterey Capital Acquisition Corporation Lawsuit

You might think, “Why should I care about a lawsuit involving some acquisition company?” The reason is that these kinds of lawsuits often affect regular investors or individuals holding certain securities. If the allegations have merit, people who invested in or held stock, units, or related securities might be able to recover money. Also, the outcome may influence how similar merger-acquisition deals are structured going forward.

So whether you own shares, units, or were involved in a deal tied to Monterey Capital, this case could have direct financial consequences for you.

Background: What Is This Lawsuit About?

What is Monterey Capital Acquisition Corporation?

Monterey Capital Acquisition Corporation (often abbreviated MCAC) is a so-called “blank check company” (also known as a SPAC). Its stated purpose is to find a business or asset to merge with, acquire, or reorganize with. In December 2023 they filed a Form S-4, signaling their intent to combine with another business.

MCAC announced a deal with ConnectM Technology Solutions, Inc. as its target business combination. On July 12, 2024, the combination was officially completed — MCAC and ConnectM merged, and trading symbols changed accordingly.

What is the lawsuit?

The lawsuit centers on a dispute between Benjamin Securities, Inc. (“Benjamin”) and the “ConnectM Parties” (ConnectM, MCAC, and affiliated persons) over breach of an “Advisory Agreement.” In short, Benjamin claims that MCAC and ConnectM failed to live up to their contractual duties under this agreement, causing Benjamin financial harm.

To resolve that dispute, in October 2024 the parties entered a settlement agreement. Under the terms, certain damages, payments, or releases would be made, subject to court approval and the parties’ performance.

Additionally, there’s another settlement involving a creditor called Last Horizon, LLC. In January 2025, MCAC/ConnectM agreed to issue shares of stock in lieu of paying a liability of about US $9,035,980.14 to settle that claim.

Thus, the lawsuit is really a set of related disputes about contracts, liabilities, and obligations tied to the merger structure.

Who’s Affected / Who Can Claim

Here are the groups most likely affected:

• Benjamin Securities, Inc. — the plaintiff in one of the main disputes, seeking compensation for alleged breach.
• MCAC / ConnectM / their officers — these are the defendants who must respond or satisfy the contractual claims.
• Investors / security holders — especially those holding shares, units, or warrants in MCAC or the combined company may see the results influencing their holdings, dilution, or value.
• Creditor claims / debt holders — like Last Horizon, who had claims against ConnectM/MCAC and were brought into the settlement.
• Potential class action plaintiffs — in some SPAC merger cases, investors bring securities class actions, alleging misleading statements or omissions. In fact, in MCAC’s SEC filings, it is warned that “volatility … could subject ConnectM to securities class action litigation.”

If you held MCAC stock, units, or warrants around the time of the merger, it’s worth checking whether you might be eligible to participate (if a class or derivative claim is certified).

Timeline: Key Events

• December 2023 — MCAC files Form S-4 to propose a merger / business combination.
• Jan 5, 2024 — MCAC announces the possibility of litigation tied to the merger.
• July 10, 2024 — MCAC holds a stockholder meeting relating to the merger.
• July 12, 2024 — The merger of MCAC and ConnectM closes.
• October 2, 2024 — Settlement agreement reached between Benjamin and the ConnectM Parties over advisory agreement claims.
• January 28, 2025 — Settlement agreement between ConnectM/MCAC and Last Horizon, LLC, resolving ~US $9 million liability by issuing shares.
• Ongoing / future — Additional litigation, claims, or securities actions could unfold.

What’s at Stake

• Money / damages — The core issue is financial: how much Benjamin is owed under the advisory agreement, and what MCAC/ConnectM must pay (in cash, shares, or other compensation).
• Dilution of shares — Issuing new shares to settle claims (as in the Last Horizon deal) can dilute existing shareholders’ equity or value.
• Investor losses — If statements by MCAC/ConnectM were misleading, investors might claim losses in a securities action.
• Reputational / regulatory risk — Companies tied to SPAC transactions are under scrutiny; adverse rulings may hurt trust in similar deals.
• Delays & costs — Litigation and settlement processes cost time, attorney fees, and administrative resources.

Overall, the consequences affect not just the parties but potentially the value of investments held by ordinary shareholders.

What to Watch Next

• Court approval of settlements — The Benjamin-ConnectM settlement needs court oversight and approval.
• Issuance of shares under the settlement — For the Last Horizon deal, shares must actually be issued, often subject to conditions.
• Certification of class or derivative claims — If investors file claims, courts may certify a class or derivative suit.
• Deadlines for filings / claims — If you are eligible, you’ll need to file timely claims or opt outs.
• Final judicial decision or appeals — Even after settlements, appeals or enforcement battles can delay resolution.
• Public disclosures / financial reports — MCAC/ConnectM’s SEC disclosures might reveal further liabilities or risks.

Keep an eye on announcements from the court, press releases from the company, or SEC filings.

FAQs

Q1: Am I eligible to get money or join the case?
A: It depends. If you were a shareholder, unit holder, warrant holder, or otherwise financially connected to MCAC/ConnectM during the relevant period, you might be eligible. But eligibility depends on how the court defines the class or claims.

Q2: Do I need a lawyer?
A: You don’t always need one, but having a securities or class-action lawyer can help you understand your rights, deadlines, and whether joining is worth it. Many class actions are handled on a “no recovery, no fee” basis (you owe nothing unless you win).

Q3: When will the case be decided or settled?
A: That’s unclear. Some parts (like the Benjamin settlement) have been agreed, but court approvals, implementation, or appeals can take months or longer. Also, any investor claims may proceed on a separate timeline.

Q4: What happens if I miss a deadline to file a claim?
A: You may lose the right to participate in the settlement or recovery. Courts are strict about deadlines (called “bar dates”). So it’s crucial to monitor notices and act promptly.

Q5: Could this case go all the way to trial or appeal?
A: Yes — if parties contest terms, or one side objects, the matter could go to trial or on appeal. Even after settlement, enforcement or disputes over payment might lead to further court action.

Q6: How much could I recover?
A: It depends on the final settlement or judgment, how many claimants there are, how much the court approves in damages, and the legal fees. Individual recoveries may be modest relative to overall damages awarded.

If you’re an MCAC/ConnectM investor or have holding in related securities, it’s wise to keep up with case updates, review notices you receive, and (if uncertain) consult an experienced attorney before deciding whether to join or opt out of any claim.