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RIVN.US

id: 1758

Rivian ($RIVN) $250M Investor Settlement

Eligible claimants can submit their claims for compensation.

$250,000,000

Cash Settlement

C.D. California

Court

2:22-cv-01524

Case number

11/10/2021

Class period Start

03/10/2022

Class period End

04/20/2026

Claim deadline

Rivian ($RIVN) has agreed to settle $250 million with investors to resolve claims that it misled them about its production costs and pricing strategy during its IPO.

Outline:

Rivian went public in November 2021, positioning itself as a premium EV maker competing with Tesla. In the months that followed, it sold its R1T and R1S models below production cost. As expenses continued to rise, the company announced additional price increases of up to $20,000 in March 2022, including for existing preorders. The move sparked customer backlash, sent $RIVN shares down more than 13%, and was soon followed by an investor lawsuit alleging misleading disclosures about costs.

Timeline:
November 10, 2021: Rivian went public, raising nearly $12 billion and valuing the company at over $85 billion.
November 2021 – February 2022: Rivian marketed and sold its R1T and R1S vehicles at prices below production costs to stay competitive as it entered the EV market.
March 1, 2022: Rivian announced an additional price increase of up to $20,000, sending $RIVN shares down more than 13% and wiping billions off its market value.
March 7, 2022: Investors filed a lawsuit, alleging Rivian misled them about vehicle production costs and pricing risks.
May 2024: Rivian agreed to a $250 million settlement, pending final court approval.
Background:

Rivian is an electric vehicle manufacturer that completed one of the largest IPOs of the decade in November 2021. In its public filings and investor presentations, the company promoted the R1T pickup and R1S SUV as next-generation EVs built to compete with Tesla and Ford.

At the time of the IPO, Rivian set starting prices for both models around $67,500, which appeared competitive. However, the actual cost of building each vehicle was much higher. According to investors, Rivian was losing money on every sale but did not clearly communicate how wide that gap was, choosing instead to focus on growth and market positioning.

As supply-chain problems and rising material costs pushed expenses even higher, Rivian announced additional price increases in March 2022, averaging about $12,000 and reaching as much as $20,000 on some models. The increases applied not only to new orders but also to existing preorders, sparking immediate customer backlash.

Within days, Rivian was forced to reverse the hikes for earlier orders, but $RIVN shares had already fallen more than 13% over two days.

Shortly after, shareholders sued Rivian, alleging the company failed to disclose the true cost of producing its vehicles. In 2024, Rivian agreed to settle the case for $250 million, pending final court approval.

What Can Investors Expect Now?

Rivian has recently agreed to settle with $RIVN investors to resolve claims that it misled the public about the cost structure of its vehicles and failed to disclose the need for significant price increases.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type

US Securities Class Action

Case Status

Accepting Claims

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

1.18

Filing date

03/07/2022

Plaintiffs

Plymouth County Retirement Association

Attorneys

Robbins Geller Rudman & Dowd LLP

Defendants

RJ Scaringe; Claire McDonough

Administrator

Verita Global

Court hearing date

05/15/2026

Objection deadline

04/24/2026

Trades matching type

FIFO

Frequently Asked Questions

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