ARVL.US
id: 1536
Arrival ($ARVL) Investor Settlement
The parties have reached an agreement to settle the case, but the terms are still being finalized.
E.D. New York
Court1:22-cv-00172
Case number11/18/2020
Class period Start11/19/2021
Class period EndArrival 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.
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
01/12/2022
Plaintiffs
Salvatore Fiorellino
Defendants
Denis Sverdlov; Michael Abelson; Tim Holbrow; Avinash Rugoobur
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11th Estate?