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Lucid Group (NASDAQ:LCID) on Wednesday won the dismissal of a lawsuit accusing the electric car company of defrauding investors in the special-purpose acquisition company 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.
“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.
The case is In re CCIV/Lucid Motors Securities Litigation, U.S. District Court, Northern District of California, No. 21-09323.
Shares of LCID are up 1% in early trading on Thursday.
