Cases & investigations

Cases & investigations

Lucid Group, Inc.

Kaskela Law LLC is investigating Lucid Group, Inc. (“Lucid” or the “Company”) (NASDAQ: LCID), formerly known as Churchill Capital Corp. IV (CCIV), on behalf of the Company’s long-term investors.

Lucid designs, engineers, builds, and sells luxury electric vehicles (“EVs”).  On February 22, 2021, Lucid announced plans to merge with CCIV, a special purpose acquisition company, in a transaction that would allow Lucid securities to be publicly traded and would provide Lucid with $4.4 billion in capital.  As Lucid transitioned into a publicly traded company, the Company reported to investors that it would produce 577 EVs in 2021, 20,000 EVs in 2022, and 49,000 EVs in 2023 (including 12,000 of the Project Gravity SUV, which would launch that year).

Recently a securities fraud complaint was filed against Lucid on behalf of certain investors who purchased shares of the Company’s stock between November 15, 2021 and February 28, 2022.  According to the complaint, during that time period Lucid made a series of materially false and/or misleading statements to investors, and failed to disclose material adverse facts to investors, about the Company’s business and operations. Specifically, defendants are alleged to have “overstated Lucid’s production capabilities while concealing that ‘extraordinary supply chain and logistics challenges’ were hampering the Company’s operations” from at least November 15, 2021.

On February 28, 2022, the Company disclosed that it: (i) had only delivered approximately 125 EVs in 2021 and still had only produced approximately 400 EVs by February 28, 2022; (ii) would only produce between 12,000 and 14,000 EVs in 2022; and (iii) would delay the launch of the Lucid Gravity until 2024.  Following this news, shares of Lucid’s common stock fell $3.99 per share, or more than 13% in value, to close at $24.99 per share on March 1, 2022.

The investigation seeks to determine whether the members of Lucid’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.

Current Lucid stockholders who purchased or acquired LCID shares prior to February 28, 2022 are encouraged to contact Kaskela Law LLC (Adrienne Bell, Esq.) at (484) 229 – 0750, or by email at [email protected], for additional information about this investigation and their legal rights and options.  Investors may also submit their information to the firm by completing the form on this page.

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