It is not news that operational setbacks can lead to securities litigation. Indeed, long-time securities litigation observers may recall that during the pandemic, supply chain disruption led to a raft of securities suits (as discussed, for example, here). The pandemic is long gone, but in its wake one vestige is the plaintiffs’ lawyers continuing proclivity to file securities suits against companies experiencing supply chain issues.

In the latest example, last week a plaintiff shareholder filed a securities suit against EV company Lucid, after the company reported that quality issues with a vendor’s vehicle component hampered the company’s vehicle deliveries during the first quarter of the fiscal year. As discussed below, the new complaint, based on problems in Lucid’s supply chain, raises several concerns. A copy of the May 29, 2026, complaint can be found here.