Lucid successfully had a lawsuit dismissed by a US District Court in which the company was accused of defrauding investors. The lawsuit alleged that the SPAC created for the public offering overstated Lucid’s production outlook.
The Judge assigned to the case noted that shareholders who brought the class action forward had no reason to believe the SPAC would merge with Lucid at the time when CEO Peter Rawlinson announced a cut in its production targets.
Thus, the alleged misleading statements by Lucid’s Chief Executive could not have been material to a decision to invest in the SPAC.
Per the ruling by US District Judge Yvonne Gonzalez Rogers
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. (via Reuters)
The merger was a significant cash injection for Lucid, as it raised $4.4 billion. However, it quickly came under scrutiny from the US Securities and Exchange Commission. Per the SEC, Lucid has been cooperating in the investigation.
Lawyers for both sides have not provided a comment on the judgment.
It is not clear if the shareholders will appeal the decision.
