Arrival ($ARVL) Investor Settlement
Arrival has agreed to settle with $ARVL investors to resolve claims that it misled them about its production capabilities, microfactory model, and revenue projections ahead of its SPAC merger with CIIG.
Outline
Between 2020 and 2021, Arrival allegedly overstated its production readiness and misled investors about the viability of its micro-factory model. In November 2021, the company slashed production guidance and revealed delays and rising costs. Following this, $ARVL fell over 95%, and Arrival faced a lawsuit from investors.
Timeline
March 24, 2021 – Arrival completed its merger with CIIG and began trading on Nasdaq under the ticker $ARVL.
November 8, 2021 – Arrival slashed its 2022 production guidance from 10,000 vehicles to 400 and disclosed rising costs. $ARVL dropped 27.6%.
November 19, 2021 – Following additional capital raise disclosures, $ARVL dropped another 20%.
August 2022 – Arrival confirmed it would build only 20 vehicles in 2022 and expected no revenue.
September 2022 – $ARVL dropped 96%.
February 14, 2023 – Investors filed a lawsuit, alleging Arrival misled them about its production capabilities and financial outlook.
March 18, 2025 – Arrival agreed to settle to resolve investor claims related to its production delays and misstatements.
Background
Arrival entered the EV market in 2020, claiming it could revolutionize vehicle manufacturing through its “micro-factory” model—small-scale, flexible production facilities using autonomous robots and proprietary materials. The company promoted high-margin forecasts and claimed it was ready to begin production of electric buses and vans.
However, many of Arrival’s key production components were not ready for use. Its autonomous mobile robots (AMRs) reportedly struggled to perform basic tasks, production molds were incomplete or faulty, and its warehouses lacked essential manufacturing infrastructure.
Despite internal delays, Arrival continued assuring investors that everything was “tracking” according to plan.
But, by late 2021, Arrival revealed it would produce far fewer vehicles than projected and disclosed substantial cost overruns. Over time, $ARVL fell 96%.
As a result, on January 12, 2023, investors sued, claiming they were misled.
What Can Investors Expect Now?
Arrival has agreed to settle with $ARVL investors to resolve claims that it misled them about its production capabilities, micro-factory model, and revenue projections ahead of its SPAC merger with CIIG.
If you were impacted by this situation, you may be eligible for a payout. You can check your eligibility and learn more in the FAQ section below.
Frequently Asked Questions
All persons and entities who (1) purchased or otherwise acquired the publicly traded securities of Arrival between November 18, 2020 and November 19, 2021, inclusive, and who held such shares on November 8, 2021 and/or November 18, 2021; (2) held CIIG common stock as of February 16, 2021, eligible to vote at CIIG’s special meeting; and/or (3) purchased or otherwise acquired Arrival Ordinary Shares pursuant or traceable to the registration statement and prospectus issued in connection with the March 24, 2021 business combination.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.12 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.48 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
1. Prepare documents for your payout
2. Audit the claim and make sure you get the maximum possible payout
3. File a claim with the settlement administration
4. Correspond with the settlement administration to resolve emerging issues
5. Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.