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Churchill Capital Corporation IV Class Action Lawsuit

Company Name
Churchill Capital Corporation IV
Stock Symbol
CCIV
Class Period
January 11, 2021 to February 22, 2021
Court
Northern District of Alabama

Case Summary

The Churchill Capital Corporation IV class action lawsuit charges Churchill Capital IV and certain of its executives along with Atieva, Inc. d/b/a Lucid Motors (“Lucid”) and its Chief Executive Officer with violations of the Securities Exchange Act of 1934 and seeks to represent all persons and entities other than defendants that purchased or otherwise acquired Churchill Capital IV securities between January 11, 2021 and February 22, 2021, inclusive (the “Class Period”). The Churchill Capital IV class action lawsuit was commenced on April 18, 2021 in the Northern District of Alabama and is captioned Phillips v. Churchill Capital Corporation IV, No. 21-cv-00539.

Churchill Capital IV is a blank check company, also known as a special purpose acquisition company (“SPAC”).  In April 2020, defendant Michael Klein launched Churchill Capital IV, which raised over $2 billion in its IPO and is listed on the New York Stock Exchange (NYSE:CCIV).  Lucid is an American automotive company specializing in electric cars.  As of 2020 its first car, Lucid Air, is in development.  On January 11, 2021, Bloomberg News reported that: “Electric vehicle maker Lucid Motors Inc. [was] in talks to go public through a merger with one of Michael Klein’s special purpose acquisition companies, according to people familiar with the matter.”  Bloomberg News further reported that the transaction could be valued at up to $15 billion and that “Churchill Capital Corp IV -- the largest [of Klein’s two SPACs], having raised more than $2 billion last year -- is the vehicle considering a deal with Lucid, some of the people said.”  On February 22, 2021, the long anticipated merger agreement between Churchill Capital IV and Lucid was announced.  Churchill Capital IV and Lucid’s transaction equity value was estimated at $11.75 billion.  Churchill Capital IV’s share price closed that day at $57.37.

On February 23, 2021, Bloomberg News reported that the Lucid CEO announced that production of its debut car would be delayed until at least the second half of 2021, with no definite date set for actual delivery of an actual vehicle.  On this news, the price of Churchill Capital stock fell by approximately 38%, damaging investors.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance.  Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors.  The rise in blank check financing poses unique risks to investors.  Robbins Geller Rudman & Dowd LLP’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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