Lucid Group on Wednesday won the dismissal of a lawsuit accusing the luxury electric car maker of defrauding investors in the SPAC that helped take it public, by significantly overstating its production outlook.
U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California said that despite media speculation, Churchill Capital Corp IV shareholders who brought the proposed class action had no reason to know in early 2021 that the SPAC would merge with Lucid, Reuters reports.
As a result, she said Lucid Chief Executive Peter Rawlinson’s alleged misleading statements on Feb. 5, 2021 on CNBC’s “Squawk on the Street” could not have been material to their decisions to invest in the SPAC.
“The court cannot conceive of how plaintiffs could reasonably think a merger was likely when Lucid and CCIV had not even publicly acknowledged that a merger was being considered,” the judge wrote. Read more.
