Rivian agrees to settle shareholder lawsuit for $250 million
Rivian has agreed to settle a 2022 shareholder lawsuit. The automaker will pay out $250 million to qualifying investors if the agreement is approved. The lawsuit stemmed from alleged deception surrounding a March 2022 price hike for the R1S SUV and R1T truck.
The class-action lawsuit alleges that Rivian misled investors around the time of its 2021 IPO. The core accusation is that the automaker failed to disclose that the R1s and R1T were initially priced lower than their production costs. Shareholders claim this made the eventual price increases inevitable, something they (understandably) believe Rivian should have shared.
Rivian raised the base price of the R1S and R1T by $12,000 in March 2022. That initially included most reservations. However, the company quickly reversed course on the last bit: Following a backlash, it allowed customers who pre-ordered before the announcement to pay the original price after all.
Rivian framed the settlement as a chance to move forward. "The company denies the allegations in the suit and maintains that this agreement to settle is not an admission of fault or wrongdoing," the automaker wrote in a statement. "However, settling will enable Rivian to focus its resources on the launch of its mass market R2 vehicle in the first half of 2026."
The US District Court for the Central District of California, Western Division, will still need to approve the settlement.
News of the proposed agreement comes a day after Reuters reported that Rivian is laying off 4.5 percent of its workforce (over 600 workers). Last month's expiration of $7,500 tax credits and President Trump's tariffs, combined with weakened EV demand, are making profitability more of an uphill climb.This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/rivian-agrees-to-settle-shareholder-lawsuit-for-250-million-171251731.html?src=rss