The U.S. Court of Appeals for the Ninth Circuit has become the second federal appeals court to hold that investors can’t sue over alleged misstatements that an acquired company makes leading up to a merger with the one they own stock in.
The San Francisco-based appeals court last week dismissed a class action suit claiming that electric car maker Lucid Motors and its CEO violated securities law by misleading investors about automobile production projection ahead of its 2021 acquisition by Churchill Capital Corporation IV (CCIV), a special purpose acquisition company (SPAC).