Key Takeaways:
A securities class action has been filed against Lucid Group Inc. alleging the electric-vehicle maker concealed a supplier quality crisis that halted Gravity SUV deliveries for 29 days, misleading investors between Feb. 25 and Apr. 13.
"The company's public statements were materially false and misleading at all relevant times," the complaint alleges, according to a filing by Bronstein, Gewirtz & Grossman LLC. The lawsuit claims Lucid failed to disclose that a supplier quality issue had significantly disrupted deliveries of the Gravity SUV, the company's critical new model, and that the disruption would have a material negative impact on financial results.
Lucid shares closed at $4.62 on the worst day of the selloff, down 16.15%, after plunging more than 50% intraday on a report that the company was weighing bankruptcy or a going-private deal. Trading volume hit 152.3 million shares, spiking about 665% above the three-month average of 19.9 million shares. The stock has fallen 95% since its 2020 initial public offering.
The class period covers Feb. 25 to Apr. 13, 2026 — weeks during which Lucid continued to provide optimistic guidance while Gravity deliveries were effectively paralyzed. Levi & Korsinsky, another firm representing investors, said the revelation marked a collapse in investor sentiment "from confidence to crisis." Investors have until July 28 to request appointment as lead plaintiff.
The lawsuit adds legal pressure to a company already navigating a leadership transition and a strategic overhaul. New Chief Executive Officer Silvio Napoli took over June 1 and promptly withdrew prior production and delivery guidance, announcing restructuring and a narrowed focus. Lucid reported about $4.7 billion in liquidity at the end of the first quarter but continues to burn cash as it ramps production of the Gravity SUV, its bet to revive demand.
Lucid has denied reports that it was considering Chapter 11 bankruptcy protection, calling the rumors "completely false." The company is expected to report second-quarter results on Aug. 4, when investors will look for updates on Gravity production, liquidity, and the autonomous technology partnership with Uber Technologies Inc.
This article is for informational purposes only and does not constitute investment advice.
