Rivian Automotive has agreed to a $250 million cash settlement with investors in a federal securities class action lawsuit.
Represented by Larson LLP as local counsel alongside Kessler Topaz Meltzer & Check LLP as lead counsel, shareholders alleged Rivan misrepresented its long-term profitability ahead of a 2021 initial public offering (IPO) by underpricing upcoming electric truck and SUV models.
Rivian raised nearly $12 billion in its IPO, making it the largest of the year. In March 2022, the company announced that it would increase the price of its electric pickup trucks and SUVs. Stock prices fell sharply in response, and shareholders sued shortly after.
After three years of litigation and independent negotiations led by a mediator, investors asked a federal judge to approve a $250 million settlement on October 23. The Larson team representing the class includes Stephen Larson, Paul Rigali, Amelia L.B. Sargent, Jonathan Gershon, Ranja Rasul, Karen Huber, Elizabeth Christianson, and Jaylla Brown.
Additional coverage of this case:
EV-Maker Rivian Will Pay $250M To End Investors’ Fraud Suit – Law360 (subscription required)