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Securities

Feb. 3, 2025

Lucid executives face derivative suit over 'fantastical' production claims

Attorneys representing Lucid shareholders claim that an Aug. 8 ruling from U.S. District Judge Araceli Martínez-Olguín in a separate securities case set the precedent for a new derivative suit. The complaint accuses 10 executives of breaching fiduciary duties by misleading investors about the electric automaker's production goals before its public debut, resulting in "tens of billions" in lost market cap and "millions" in investor losses.

Attorneys representing shareholders in a derivative suit filed last week against executives for Lucid Group Inc., the company behind electric auto manufacturer Lucid Motors, claim that a ruling last year from U.S. District Judge Araceli Martínez-Olguín in a separate case "paved the way" for their clients to sue.

Their complaint, filed on Jan. 29 in the Northern District of California, accused Peter Rawlinson, Lucid's CEO, and nine other executives of breaching their ...

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