The Innoviz lawsuit was a securities fraud class action filed in March 2024 in the U.S. District Court for the Southern District of New York, accusing the Israeli lidar maker of misleading investors about the value of its automaker partnerships and its path to profitability. The case, Lucid Alternative Fund, LP v. Innoviz Technologies Ltd. (Case No. 1:24-cv-01971), was voluntarily dismissed on August 5, 2024, roughly five months after it was filed and with no settlement reflected in the court record.1Stanford Law School Securities Class Action Clearinghouse. Innoviz Technologies Ltd.
What Investors Accused Innoviz of
Lucid Alternative Fund filed the complaint on March 15, 2024, before Judge Analisa Torres, bringing claims under Section 10(b) of the Securities Exchange Act of 1934, SEC Rule 10b-5, and Section 20(a).2Law360. Lucid Alternative Fund LP v. Innoviz Technologies Ltd. et al3Howard Smith Law. Innoviz Technologies Complaint
The proposed class covered anyone who bought Innoviz securities between April 21, 2021 (the day after the company’s SPAC merger closed) and February 28, 2023 (the day before it reported fiscal 2022 results).4Levi & Korsinsky. Innoviz Technologies Ltd. Class Action Lawsuit
The complaint made three connected allegations:
- Innoviz overstated the value it would derive from contracts, partnerships, and collaborations with automotive OEMs.
- Because those benefits were exaggerated, the company was unlikely to hit the profitability levels it had represented.
- Its broader public statements about financial prospects were therefore materially misleading throughout the class period.5Kessler Topaz Meltzer & Check. Innoviz Technologies Ltd.
What Triggered the Suit
The class period ended on February 28, 2023, because of Innoviz’s earnings release the next morning. On March 1, 2023, the company reported fiscal 2022 GAAP earnings per share of negative $0.94 and revenue of $6.03 million, both short of analyst estimates. More damaging was its fiscal 2023 revenue guidance of $12 million to $15 million, far below the $30 million consensus. The release also offered fewer specifics about Innoviz’s Tier-1 automaker partnerships than investors had been led to expect.6Robbins LLP. Innoviz Technologies Ltd. Shares fell $0.71, or roughly 15%, closing at $4.04.7PR Newswire. Berger Montague Advises Innoviz Technologies Ltd. Investors
How the Case Ended
The deadline for investors to seek lead plaintiff status was May 13, 2024. On June 4, 2024, the court appointed three individual investors as co-lead plaintiffs: Jackob Raz, who claimed losses of about $38,911, and Harvey Tesler and Joel Leon, who together claimed roughly $44,964. The original filer, Lucid Alternative Fund, was not appointed. Levi & Korsinsky, LLP and Pomerantz LLP were named co-lead counsel.8Levi & Korsinsky. Lucid Alternative Fund LP v. Innoviz Technologies Lead Plaintiff Appointment Latham & Watkins represented Innoviz.2Law360. Lucid Alternative Fund LP v. Innoviz Technologies Ltd. et al
Just two months later, on August 5, 2024, the plaintiffs voluntarily dismissed the action.1Stanford Law School Securities Class Action Clearinghouse. Innoviz Technologies Ltd. The case never produced a ruling on the merits, and the public record shows no settlement. No related SEC investigation, restatement, or enforcement action against Innoviz has been publicly reported, and the company’s most recent annual filing confirmed that all required Exchange Act reports had been filed and no restatements were necessary.9Innoviz Technologies. Annual Report FY 2024
A Separate Lawsuit in Delaware
A different case, often confused with the securities action, was filed on March 28, 2024, in the Delaware Court of Chancery. It targeted former officers and directors of Collective Growth Corporation, the SPAC that merged with Innoviz in 2021, alleging breach of fiduciary duty and unjust enrichment tied to disclosures in the merger proxy about the defendants’ financial interests and net cash per share. Innoviz itself was not a defendant, though its SEC filings noted a potential indemnification obligation to the former Collective Growth officers and directors.10Innoviz Technologies. SEC Filing – Legal Proceedings
On November 19, 2025, the Chancery Court granted the defendants’ motion to dismiss with prejudice. The plaintiff filed a notice of appeal the same day, and appellate briefing was completed as of February 27, 2026.11SEC. Innoviz Technologies Exhibit 99-1
Where Innoviz Stands Since the Class Period
The partnerships at the center of the complaint have continued to develop. Innoviz describes itself as the first solid-state lidar provider selected by a major automaker for mass production, tied to a program with BMW on the 7 Series. In August 2023, the companies announced a follow-on agreement to develop “B-Samples” of a next-generation platform built around the InnovizTwo sensor. The announcement was structured as a development-phase deal rather than a confirmed serial production order, and Innoviz’s own disclaimers acknowledged that converting “design wins into definitive orders” remained a risk.12PR Newswire. Innoviz Technologies to Develop B-Samples of New Lidar Platform for Next Generation of BMW Automated Vehicles A separate program with Volkswagen’s autonomous-driving division is integrating nine InnovizTwo units into each ID. Buzz AD Level 4 shuttle, with hundreds equipped through 2025 for MOIA and Uber fleet deployments beginning in 2026.13PR Newswire. Innoviz Technologies Accelerates Delivery of Newly Designed Lidar Platform to Volkswagen Autonomous Mobility
Financially, revenue has grown while losses remain large. Innoviz reported $20.9 million in revenue and a $123.5 million net loss for fiscal 2023, followed by $24.3 million in revenue and a $94.8 million net loss for fiscal 2024, with operating expenses down 17% year over year. The company held about $68 million in liquidity at the end of 2024, set a fiscal 2025 revenue target of $50 million to $60 million, and raised roughly $40 million in a February 2025 registered direct offering.14Innoviz Technologies. Innoviz Reports Fourth Quarter and Full Year 2024 Results Its own annual report states that profitability is not expected in the near term.9Innoviz Technologies. Annual Report FY 2024