AP7 Secures Class Certification for Lucid Investors

On September 25, 2026, Judge Araceli Martínez-Olguín of the Northern District of California granted Lead Plaintiff Sjunde AP-Fonden’s (“AP7”) motion for class certification, certifying a class of investors who purchased the common stock of Lucid Group, Inc. (“Lucid”) between November 15, 2021 and August 3, 2022 and appointing AP7 as class representative and Kessler Topaz as class counsel. This securities fraud class action arises out of Defendants’ misrepresentations and omissions regarding Lucid’s production of its only commercially-available electronic vehicle, the Lucid Air, and the factors impacting that production.

In certifying the class, Judge Martínez-Olguín rejected arguments by Defendants Lucid and Lucid’s former CEO, Peter Rawlinson, that they had proven a lack of price impact from the alleged misstatements. Judge Martínez-Olguín also rejected Defendants’ claims that AP7’s expert failed to put forth a damages model that satisfies the standard that the Supreme Court articulated in Comcast Corp. v. Behrend, 569 U.S. 27 (2013). In reaching this conclusion, the Court observed that the proposed out-of-pocket damages methodology is the standard measure of damages in Section 10(b) cases and was unpersuaded by Defendants’ arguments that the Fourth Circuit’s recent decision in Office of Gen. Treasurer on behalf of Emps. Ret. Sys. v. Boeing Co., 182 F.4th 422 (4th Cir. 2026) warranted a departure from the well-established law in the Ninth Circuit regarding the sufficiency of the damages methodology articulated by AP7’s expert. Finally, Judge Martínez-Olguín found that AP7’s use of an index investment strategy did not render it atypical or inadequate, noting that similar challenges have been uniformly rejected by other courts. The case will next proceed to expert discovery.