Rivian Agrees To Settle Shareholder Lawsuit For $250 Million

Rivian has agreed to settee a 2022 shareholder lawsuit. The automaker will pay out $250 cardinal to qualifying investors if nan statement is approved. The suit stemmed from alleged deception surrounding a March 2022 value hike for nan R1S SUV and R1T truck.

The class-action suit alleges that Rivian misled investors astir nan clip of its 2021 IPO. The halfway accusation is that nan automaker grounded to disclose that nan R1s and R1T were initially priced little than their accumulation costs. Shareholders declare this made nan eventual value increases inevitable, thing they (understandably) judge Rivian should person shared.

Rivian raised nan guidelines price of nan R1S and R1T by $12,000 successful March 2022. That initially included astir reservations. However, nan institution quickly reversed course connected nan past bit: Following a backlash, it allowed customers who pre-ordered earlier nan announcement to salary nan original value aft all.

Rivian framed nan colony arsenic a chance to move forward. "The institution denies nan allegations successful nan suit and maintains that this statement to settee is not an admittance of responsibility aliases wrongdoing," nan automaker wrote successful a statement. "However, settling will alteration Rivian to attraction its resources connected nan motorboat of its wide marketplace R2 conveyance successful nan first half of 2026."

The US District Court for nan Central District of California, Western Division, will still request to o.k. nan settlement.

News of nan projected statement comes a time aft Reuters reported that Rivian is laying disconnected 4.5 percent of its workforce (over 600 workers). Last month's expiration of $7,500 taxation credits and President Trump's tariffs, mixed pinch weakened EV demand, are making profitability much of an uphill climb.