Churchill Capital Corporation IV
|Company Name||Churchill Capital Corporation IV|
|Class Period||January 11, 2021 to February 22, 2021|
|Lead Plaintiff Motion Deadline||August 30, 2021|
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.
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