Pomerantz Appointed Co-Lead Counsel in Churchill Capital Securities Litigation

On September 16, 2021, U.S. District Judge Annemarie Carney Axon of the Northern District of Alabama (Eastern Division) appointed Pomerantz LLP as Co-Lead Counsel on behalf of the Lead Plaintiffs in Phillips v. Churchill Capital Corporation, 21-cv-539 (N.D. Ala.), a securities action brought on behalf of a class of defrauded investors concerning allegations related to statements made regarding the volume of automobiles to be produced following the merger of Churchill Capital Corporation IV (“Churchill” or the “Company”) and Lucid Motors, Inc. (“Lucid”).

Churchill is a blank check company, also known as a special purpose acquisition company (SPAC), formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Lucid is an American automotive company specializing in electric cars. Lucid’s first car, the Lucid Air, is currently in development.

On February 22, 2021, a long-anticipated merger between Churchill and Lucid was announced.  Shortly thereafter on that same date, Lucid’s Chief Executive Officer announced that production of its debut car would be delayed until at least the second half of 2021, with no definite date for set for actual delivery of an actual vehicle.  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 this news, Churchill’s share price fell $22.16 per share, or 38.6%, to close at $35.21 per share on February 23, 2021.