
In a significant number of the many SPAC-related lawsuits that have been filed in recent years, SPAC investors allege that executives at the previously private target company into which the SPAC merged made pre-merger misrepresentations about the target company’s operations or prospects. In an interesting decision in a securities suit involving Lucid Motors and that has a great deal of potential significance for many of these SPAC-related suits, the Ninth Circuit has held that the SPAC investors, who were neither purchasers nor sellers of the stock of the target company, lack standing to pursue their claims against Lucid Motors for alleged pre-merger misrepresentations. The Ninth Circuit’s August 8, 2024, opinion in the Lucid Motors case can be found here.Continue Reading 9th Circ.: SPAC Investors Lack Standing to Sue Over Merger Target Company’s Misrepresentations