Lucid Leaders Sued Over Electric Vehicle Production Shortcomings

Lucid Group Inc. executives overhyped the luxury electric car maker’s production capacity surrounding its 2021 SPAC merger to the company and investors’ detriment, a shareholder derivative action said.

Former CEO Peter Rawlinson and others hid the impact of internal logistics problems on production, at first blaming projected shortcomings in 2022 on industry-wide supply chain challenges, stockholder Kathleen McKenny told the US District Court for the District of Delaware. Investors learned about the significance of internal issues in August 2022, and the stock price plummeted after both target slashes, her Feb. 28 complaint said.

While the stock was propped up ...