A Ninth Circuit panel appeared skeptical Thursday of investors’ bid to revive a proposed class action alleging that Lucid duped them into buying stock in Churchill Capital IV ahead of the $11.75 billion merger that took the EV maker public.
The companies closed the deal in July 2021 with Lucid trading on the Nasdaq.
In the initial lawsuit filed nearly two years ago, plaintiffs who purchased shares in Churchill IV, which later merged with Lucid Motors, alleged that, prior to the merger, the company had made misrepresentations and omissions about its value. However, the court dismissed their claims for failure to identify any misrepresentations because the challenged statements were made before the SPAC and the electric vehicle company had announced that they were in merger discussions.
Plaintiffs have since tried to revive the case. Read more.
