Lucid Group Inc. (LCID) Overstated its Production Capabilities and Hid its Supply Chain and Logistics Challenges
A shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Lucid Group, Inc. (NASDAQ: LCID) securities between November 15, 2021 and February 28, 2022, for violations of the Securities Exchange Act of 1934. Lucid designs, engineers, builds, and sells luxury electric vehicles. It currently sells the Lucid Air, and plans to launch an SUV, the Lucid Gravity.
According to the complaint, during the class period, defendants repeatedly assured investors the Company’s production capacity was rapidly increasing and that it would reach its production targets, including 577 EVs in 2021, 20,000 EVs in 2022, and 49,000 EVs in 2023.
However, these statements were false. On February 28, 2022, the Company admitted that it: (1) had only delivered approximately 125 EVs in 2021 and still had only produced approximately 400 EVs by February 28, 2022; (2) would only produce between 12,000 and 14,000 EVs in 2022; and (3) would delay the launch of the Lucid Gravity until 2024. Defendant Rawlinson attributed the slashed production outlook to “the extraordinary supply chain and logistics challenges [Lucid] encountered.” On this news, the price of Lucid common stock fell $3.99, or more than 13%, to close at $24.99 per share on March 1, 2022.
Next Steps: If you acquired shares of Lucid Group, Inc. (LCID) between November 15, 2021 and February 28, 2022, you have until May 31, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.