NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Northern District of Alabama on behalf of investors that purchased Churchill Capital Corporation IV (NYSE: CCIV) securities between January 11, 2021 and February 22, 2021, inclusive (the “Class Period”). Investors have until August 30, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
On January 11, 2021, Bloomberg News reported that Lucid Motors Inc. ("Lucid"), an American automotive company specializing in electric cars, is in talks to go public via merger with one of Michael Klein’s special purpose acquisition companies, including Churchill.
Over the next several weeks, Lucid’s Chief Executive Officer Peter Rawlinson made media appearances during which he stated that Lucid was aiming for a spring delivery for its first vehicles.
On February 22, 2021, the merger between Churchill and Lucid was announced with transaction equity value estimated at $11.75 billion. Churchill’s share price closed at $57.37.
The same day, after the market closed, Bloomberg News reported that production of Lucid’s debut car would be delayed until at least the second half of 2021 with no definite date for the actual delivery of vehicles. Details of the merger also disclosed that Lucid was projecting the production of only 557 vehicles in 2021, instead of the 6,000 it had been touting in the run-up to the merger announcement.
On February 23, 2021, Churchill’s stock fell $22.16, or 38%, to close at $35.21 per share on February 23, 2021.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) Lucid was not prepared to deliver vehicles by spring of 2021; (2) Lucid was projecting a production of 557 vehicles in 2021 instead of the 6,000 vehicles touted in the run-up to the merger with Churchill; and (3) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased Churchill securities during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
