SPAC Investors Lack Standing to Sue Over Lucid Motors Production

Investors who purchased stock in a blank-check company can’t sue Lucid Motors’ predecessor over alleged pre-merger manufacturing misrepresentations because they lack standing, the Ninth Circuit ruled Thursday.

The investors “would need to have purchased or sold Lucid stock to have standing to bring this action under Section 10(b)” of the Securities Exchange Act, Judge Ronald M. Gould said for the appeals court. But they didn’t buy or sell Lucid stock “as Lucid was a privately held company during the relevant period,” he said.

The unanimous three-judge panel of the US Court of Appeals for the Ninth Circuit joined the Second ...