Rivian Will Pay $250M to Settle Legal Suit Over Price Hikes
Electric Vehicle Manufacturer Doesn't Admit Fault or Wrongdoing in Proposed Settlement, Which Requires Court Approval
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Rivian Automotive agreed to pay $250 million to settle an investor lawsuit, against the electric vehicle maker, saying it’s eager to put the legal wrangling behind it.
The Irvine, Calif.-based company issued a surprise statement late Oct. 23 saying it doesn’t admit fault or wrongdoing in the proposed settlement, which requires court approval. Rivian said it will pay through a combination of $67 million in directors’ and officers’ liability insurance and $183 million from cash on hand.
“Settling will enable Rivian to focus its resources on the launch of its mass market R2 vehicle in the first half of 2026,” the company said.
The case centered on allegations that Rivian knowingly failed to disclose material information — including plans to raise prices on its debut vehicles — until after its initial public offering in November 2021. The claims were brought in 2022 on behalf of purchasers of its Class A common stock.
Shares of Rivian were little changed in postmarket trading after closing up 1.3% to $13.09. The stock is down about 1.6% so far this year, but trades at a fraction of its post-IPO high of $172.
The announcement comes the same day the EV manufacturerit would cut 4.5% of its workforce, its second round of layoffs since September.
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